The Injective (INJ) token is currently in a phase of consolidation, as evidenced by the activity of its daily active addresses.
This is drawing the attention of market watchers and traders who are analyzing on-chain metrics to predict a potential price increase toward the $40 and then $50 levels.
Injective Network Growth Has Steadily Increased
For the first time since January 12, the daily active addresses exceeded 1,000 on April 9. Moreover, the network’s growth, represented by the creation of new daily addresses, stood at 234 on April 9, marking an uptick from the yearly low of 130 recorded on April 4.
The surge in network activity could suggest a boost in user engagement and a phase of accumulation, with an increasing number of traders joining the network. This could potentially set the stage for a bullish momentum.
Expanding on this, the network growth of INJ has been on a consistent rise. This indicator, frequently a signal of future price trends, reveals an ongoing increase in new wallet creation, which points to an influx of new capital and an expanding base of users.
Moreover, despite experiencing variations, the Daily Active Addresses statistic for INJ continues to display a predominantly ascending trajectory, highlighting enduring and increasing engagement of users with the token. These indicators of steady network expansion and active user participation are often seen as precursors to a rise in token value.
Injective Holders Are In An Almost Perfect Balance Between Profit And Loss
An in-depth analysis of Injective Protocol’s (INJ) Global In/Out of the Money (GIOM) data reveals a significant number of addresses that purchased INJ at prices ranging from $23 to $31.50. Within this price bracket, a substantial portion of addresses are classified as ‘In the Money,’ indicating profitability.
The GIOM metric categorizes addresses based on their current financial status in relation to their holdings: those making a profit are ‘In the Money,’ those at break-even are ‘At the Money,’ and those facing losses are ‘Out of the Money.’
Currently, 44.27% of INJ holders within the specified price range are seeing profits, whereas 42.88% are experiencing losses, and 12.85% are at a break-even point. The present market price is a critical juncture for INJ stakeholders, as any increase could shift more holders from a loss to a profit status.
Source: IntoTheBlock
What The Graphs Say About The Current Trend?
The four-hour price chart for Injective Protocol (INJ) reveals a constricted trading pattern, indicating that while the token remains under important moving averages, its current price behavior could suggest an accumulation phase by investors who are optimistic about its potential for future growth.
As mentioned previously, the Injective Protocol finds itself in a phase of consolidation, remaining below key levels of Exponential Moving Average (EMA), including the 20, 50, 100, and 200 EMAs. This position is generally interpreted as indicative of bearish market sentiment by market analysts.
Nevertheless, a hint of positive sentiment emerges with the Relative Strength Index (RSI) positioned at around 21.23, signaling that the market might be oversold and a rebound could be forthcoming.
Contrarily, the Moving Average Convergence Divergence (MACD) underscores the current bearish outlook, as evidenced by the MACD line positioned beneath the signal line and a growing negative histogram, indicating increasing bearish momentum.
As INJ fluctuates around critical price points, its ability to achieve the $40 target rests on a significant shift in market dynamics. Although technical indicators suggest the potential for a reversal, the future trajectory of INJ will depend on whether it can gather the strength to break through bearish constraints and initiate an upward movement.
Should the market sentiment deteriorate further, INJ might be pushed to revisit significant support levels, particularly around the $30 mark.
