Here’s why INJ price has soared and why it could dip by 46%

Here’s why INJ price has soared and why it could dip by 46%

By Crispus Nyaga - min read
  • Injective Protocol’s token has been one of the best performers this year.

  • Oscillators like the RSI and Stochastic have become extremely overbought.

INJ, Injective Protocol’s native token, has continued soaring in the past few months as demand for the DeFi-focused network jumped. The token rose to a high of $9.67, the highest point since February 7 of this year. In all, the token has jumped by more than 736% from the lowest level in December. 

Why is Injective Protocol is soaring

Injective Protocol is a fast-growing platform that aims to change the finance industry. It is one of the few protocols that is designed to disrupt the financial sector. It does this by creating a platform where developers can build quality dApps in the financial industry. The platform has low transaction costs and faster speeds.

There are several reasons why the INJ crypto price has been in a strong bullish trend. First, the developers are now running a hackathon that is seeing tens of developers submit their projects. Winners will receive both funding and mentorship from a team of experienced venture capital firms.

The other important Injective news is that it will now be possible to liquid stake INJ tokens. Liquid staking is a technology that makes it possible for people to stake their tokens in an easy and decentralized manner. 

With liquid staking, users can withdraw their tokens before the maturity period. This staking is being made possible by Stride, a leading Lido DAO alternative for the Cosmos ecosystem. It has over $25 million in total value locked (TVL).

The vote of liquid staking has attracted 57% of token holders, with more than 99% of voters being in the affirmative. Injective has an APY of 16.2% this year while the number of bonded tokens has risen to over 35.2 million tokens.

The most recent INJ news was a new proposal that will help it amplify liquid staking by incentivizing stINJ pool on Astroport.

https://twitter.com/AltcoinPsycho/status/1647664708256690177

INJ price prediction

The daily chart shows that the INJ price has been in a strong bullish trend in the past few months. As it rose, the token managed to move above the key psychological levels of $8, $6, and $5. It has also jumped above all moving averages.

However, oscillators show that the token has become extremely overbought. Therefore, at this stage, a risk/reward analysis mean that it is a bit risky to invest in the token for now. As a result, there is a likelihood that it will pull back and retest the key support level at $4.91, which is about 46% below the current level.

How to buy Injective

Kraken

Kraken is a San Francisco-based cryptocurrency exchange that allows users to trade various digital currencies. With a strong emphasis on security, Kraken employs cold storage for most funds and offers two-factor authentication (2FA). Its user-friendly interface provides real-time charts and order books, making it suitable for both beginners and experienced traders. Kraken also complies with regulatory requirements in the jurisdictions where it operates.

Bitstamp

Bitstamp, established in 2011, is a pioneer in the cryptocurrency exchange world, offering a secure and straightforward platform for trading a variety of digital currencies. It’s known for its user-friendly design, robust security measures, and global reach, making it a preferred choice for crypto traders worldwide.