Injective (INJ) has surpassed the $10 mark, continuing its 10-day winning streak. The recent surge in price can be attributed to the launch of a new product feature on the Injective decentralized exchange (DEX). This feature allows users to trade “pre-launch” tokens before they are officially listed or launched. Since the announcement, hundreds of new users have joined the Injective network, leading to a spike in network growth.
Increased demand for the native token and products on the platform has driven the price of INJ to a 20-month high. However, on-chain data suggests that the media hype surrounding this rally may be reaching euphoric levels. In the past, extreme media frenzy has been an early warning sign of a potential price reversal.
While a mild retracement is possible due to profit booking by holders, the organic network growth provides support at a relatively high price level. The presence of a buy-wall at $8.50 further supports this forecast. On the other hand, if the bulls continue to push the price upwards, they may encounter resistance at $12.
In conclusion, while there is potential for a retracement in INJ’s price, the bullish momentum driven by new users and product features could lead to further gains in the future.
Hot Take: INJ’s Price Surge Fueled by New Product Feature and Increased Network Growth
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