In a week that saw significant downturns for many digital assets, Injective (INJ) experienced a substantial decrease in its market price. The asset underwent a steep price correction of about 35%, a move that prompted it to retest the 100-day exponential moving average (EMA)—a critical technical indicator not touched in six months. Despite the jarring short-term decline, technical analyst Jelle indicates that the primary trend, a foundational market structure, still stands firm.
The recent trading patterns for INJ have shown a stark series of red candlesticks, denoting closing prices lower than opening ones within selected time frames. However, a silver lining appears as the underlying trendline, drawn across the valleys of the price points, suggests an ascending trajectory. This pattern of ‘higher lows’—each low point being above the preceding one—implies resilience in the asset’s valuation over the long term.
A pivotal moment occurred when INJ’s price action gravitated back to the 100-day EMA, a level watched closely by traders for signs of support or reversal. Historically, such a test can either reinforce the trend or indicate a potential shift. The present approach toward this average is a focal point for potential buyers and sellers alike, setting the stage for future price dynamics.
At the time of writing, Injective’s performance stands at a 17.29% decline over the past week. This figure places it in a position that lags behind the general crypto market movement, which saw a lesser decline of 3.70%. Moreover, within its cohort—Layer 1 (L1) cryptocurrencies—INJ’s performance also trails, as its counterparts experienced a smaller average dip of 6.50%.
The analysts suggest a cautious watch on the $50 mark, which might face another test soon. Should the price of INJ, currently at $36.97, approach this level again, skepticism looms over its ability to act as a reliable support, given the recent breach and subsequent behavior of the market.
In the broader context, INJ’s market capitalization remains robust, reflecting a significant stake within the cryptocurrency landscape. Despite the downturn, the market cap of over $3 billion underscores a resilient valuation in light of the circulating supply of 88 million INJ.
