Injective (INJ) Price Stuck in Consolidation – Is a Breakout Imminent?
The Injective (INJ) price momentum turned bearish following the formation of its all-time high nearly two weeks ago.
INJ is now recovering again, rising by more than 15% in the past three days, but will it be able to break consolidation?
Injective Investors Are Pushing OnInjective price is currently trading at $40.17, up from $35.02 just 72 hours ago. This has given bullish signs for investors once again, who were reeling from the 32% correction observed since mid-March.
As a result, as Injective price attempts to escape consolidation, investors are contributing to the network as well. The addresses that have been conducting transactions on the network tend to drive the price. In the case of INJ, these are majorly dominated by investors at the money.
Injective Active Addresses by Profitability. Source: IntoTheBlock
These investors are presently breaking even and are waiting for the price to shoot up in order to find profits. Their activeness shows that INJ holders are still optimistic about the Injective price rising further, which will boost the bullish momentum.
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However, an important cohort has been rather dormant and needs to engage in transactions in order to rally Injective prices. This cohort is the whale addresses that dominate more than 84% of the circulating supply of INJ.
At the moment, these holders are only conducting $7 million worth of transactions on average against the total volume of $14 million. This shows that despite their dominance, their participation is limited, which, if improved, would push the INJ price higher.
Injective Whale Transactions. Source: IntoTheBlock
INJ Price Prediction: $45 Is the Target
The injective price is testing the local resistance level marked at $41, which, if breached successfully, would enable INJ to rise further. Presently, the cryptocurrency is consolidated between $35 and $45.
Once the Injective price breaches $45, it would have a shot at rallying towards the all-time high of $51.85, provided it can break through the $50 resistance level.
INJ/USDT 1-day chart. Source: TradingView
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However, should this breach fail, the Injective price would be vulnerable to a retrace towards $35. Losing this support floor would invalidate the bullish thesis and send INJ back to $31.
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