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- INJ’s momentum has stalled in the past 127% extension.
- The huge profits being enjoyed by holders could lead to sharp price movements in the coming days.
Injective (INJ) is up 500% since October 12th. Technical analysis of the token shows that above $25 is clear sky and $55 is very likely at the moment.
However, holders at low prices will certainly increase selling pressure on INJ.
AMBCrypto’s technical analysis suggested several levels at which holders could book profits. Re-entry can wait until the trend plateaus and a significant decline occurs. On-chain indicators also pointed to an overbought market situation.
If history repeats itself…
Source: INJ/USDT on TradingView
Based on the October rally from $7.16 to $19.14, a series of Fibonacci retracement and extension levels (yellow) have been marked. The $15 and $25 levels acted as strong resistance in 2021, but not in 2023.
INJ has risen higher once again after consolidating between $15 and $18 for almost a month. In the uptrend, the 100% and 127% extension levels acted as resistance. This was followed by another rapid push towards the 200% level.
RSI on the daily chart hit 88, deep in overbought territory.
However, this does not mean that a withdrawal must occur. We can expect several tests of the $46.35 level in the coming days, a slight retracement towards $40, and another rise if there is a repeat of last month’s trading.
But trading has never been that easy.
The MVRV rate is again above its November high.
Source: Santiment
As prices continued to rise, age-related indicators remained silent. This means that INJ tokens have not been moved in large quantities, which is usually a signal that precedes a huge selling wave. However, the MVRV was very high.
Realistic or not, INJ’s BTC market cap is:
It is very likely that rational holders will sell their tokens to realize profits, which could significantly undermine the bulls’ interests. The average monetary age showed an upward trend from November 24 to December 10, but then the trend stopped.
Overall, it made sense for INJ holders to sell and wait for a range to form before accumulating once again.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.