Injective’s (INJ) price movement has been horizontal in the past few days due to marginal activity on its chart. However, a bullish trend may be forming, which could soon turn in favor of investors.
INJ’s Unlocking Event
The popular altcoin INJ was awaiting the next token unlock that would maximize its circulating supply. Data from CoinMarketCap showed that after INJ’s price increase, it experienced a price correction. As a result, the token managed to rise just over 1% in the last 24 hours. At the time of writing, INJ was trading at $37.41 with a market value of over $3.1 billion, making it the 27th largest cryptocurrency. To better understand what caused the price correction, INJ’s liquidation map was checked. INJ’s liquidation increased rapidly when its price reached $41.
High sell-offs initiated a bear rally that pulled down the token’s price. A popular crypto analyst, Captan Faibik, recently tweeted highlighting the formation of a bullish flag pattern on Injective’s chart. If the token successfully tests this pattern, investors could soon witness a bull rally, potentially significantly increasing INJ’s price. This possibility was checked by looking at INJ’s daily chart. According to analyses, most market indicators were on a downward trend at the time of writing. Particularly, the relative strength index (RSI) and the money flow index (MFI) recorded declines and were moving towards a neutral level.
INJ Current Data
The token’s chaikin money flow (CMF) also followed a similar trend, indicating an increased possibility of a price drop. As news of a bullish trend emerged, account X announced that the token unlock for INJ would release 100% of its total supply on January 21, 2023. Specifically, a total of 3.66 million INJ tokens will be unlocked that day. This unlocking event could help increase the token’s social metrics, which in turn could have a positive impact on its price. However, INJ’s social dominance remained high. Weighted sentiment also improved, which could mean that a bullish trend was dominant in the market during this period.
