According to a recent analysis, the Injective (INJ) network is bracing for a significant market event with the upcoming release of approximately $150 million worth of INJ tokens. This development, scheduled for January 21, is poised to introduce heightened volatility in the cryptocurrency’s price, marking a pivotal moment for investors and market analysts alike.
Token unlocks are critical events in the cryptocurrency realm, often viewed with a bearish outlook. These occurrences lead to an increase in the asset’s supply, which, coupled with unchanged demand, typically results in a decrease in value. For Injective, the release of 3.67 million INJ tokens, which represents 4.33% of the total supply, could significantly influence market dynamics. The majority of these tokens are allocated to the network’s advisors and team, introducing potential selling pressure into the market.
Since December 20, INJ’s price has been fluctuating within a defined range, marked by $31.00 and $43.51. This pattern indicates a consolidation phase, which could narrow due to the expected increased volatility. Technical indicators such as the Bollinger Bands and the Relative Strength Index (RSI) suggest a bearish trend. The RSI is trending downwards, indicating declining momentum, and the Moving Average Convergence Divergence (MACD) has moved below its signal line, further supporting the possibility of a downturn.
If the bearish sentiment prevails, the INJ price might breach the support level provided by the Bollinger Bands’ centerline, potentially dropping to its lower band at $34.24. In a more severe scenario, the price could plummet to the $31.00 support level. These projections underscore the importance of closely monitoring market trends and technical indicators in the lead-up to the token unlock event.
The upcoming token unlock for Injective presents both challenges and opportunities for investors. While it’s crucial to approach such events with caution, they also offer insights into the market’s dynamics and investor sentiment. As the cryptocurrency market continues to evolve, staying informed and agile remains key to navigating its complexities.
The current price for Injective (INJ) during this press was $40.52 with a 24-hour trading volume of $117,723,793.38. This, according to CoinGecko, represents a -3.43% price decline in the last 24 hours and a -2.06% price decline in the past 7 days.