INJ Price at Risk of Decline Despite $100M Injective Fund Launch
The price of INJ saw an increase of 3.6% on Tuesday, September 2, as investors reacted favorably to the expanded Injective Digital Asset Treasury, aimed at acquiring the token.
Overview
- The price of Injective could potentially drop in the coming days.
- A rising wedge chart pattern has appeared on the daily chart.
- The Injective Digital Asset Treasury, which is supported by $100 million, has been established.
Injective (INJ) rose to $12.90, representing an increase of over 4% from its weekly low. However, it is still more than 60% below its peak in November of last year.
The increase in INJ’s price follows growing interest in the Injective Digital Asset Treasury, which holds $100 million in assets. Prominent investors include FalconX, Monarq, Canary Capital, and Kraken, collectively managing over $30 billion in assets.
This launch coincides with a broader trend of companies accumulating cryptocurrencies. At present, over 100 public firms hold nearly 1 million Bitcoin (BTC) collectively, as well as substantial quantities of leading tokens like Ethereum, Tron, and XRP.
Additionally, the price of INJ has responded to the potential for a spot Injective ETF. The SEC has started the comment period for the INJ ETF, which could stimulate greater demand for the token.
It is crucial to mention, however, that Injective remains a smaller player within the crypto market. Data from DeFi Llama indicates that the network’s total value locked is currently just $80 million, down from over $158 million last year.
In the last 24 hours, Injective recorded only $898,000 in decentralized exchange volume, while stablecoin transactions reached $26 million.
Technical Analysis of INJ Price
The daily chart reveals that INJ peaked at $16.46 in August before sliding to a low of $12.10. It currently trades slightly below the 50-day and 100-day exponential moving averages.
Injective has developed a rising wedge pattern, marked by two ascending and converging trendlines that are nearing convergence. The MACD lines have fallen below the zero line, signifying bearish momentum.
This indicates that the token is likely heading towards a bearish breakout, potentially targeting support around $10, reflecting a 21% decline from the current price. Conversely, there remains a chance that the token could rally and retest the upper boundary of the channel at $16.46.