Injective Price Faces Challenges Amid Investor Skepticism
The Injective (INJ) price is currently experiencing a bearish trend, with rising skepticism among investors leading to increased selling pressure. This trend poses challenges to the potential recovery of the price.
Injective Holders Shift Their Holdings
– The surge in selling among investors is impacting Injective’s price, resulting in higher outflows on the network.
– The Chaikin Money Flow (CMF), which is at a two-month low, reflects this increased selling pressure.
– The CMF is a technical indicator that measures volume-weighted accumulation and distribution, indicating the strength of a trend.
– A value above 0 signals rising buying pressure, while a value below suggests increasing selling pressure.
– Currently, INJ is experiencing the latter, with the indicator at April lows.
Investor Actions Reflect Bearish Outlook
– Active addresses by profitability reveal that profitable investors are dominating the market.
– This dominance, exceeding 25%, indicates a bearish sign.
– Specifically, in the case of INJ, profitable investors hold 31% of all active addresses, suggesting a bearish outcome.
INJ Price Prediction: Potential Breakout or Breakdown
– Injective’s price is currently trading at $29.3, approaching resistance at $30.9.
– To breach this resistance, the rally needs to continue following a recent breakout from a consolidation phase.
– However, there is a possibility of the breakout failing, leading to a price drop below $28.0 and vulnerability to further consolidation.
Key Considerations for INJ Price Movement
– If INJ manages to bounce back from $28.0 and stay above it, the decline could be prevented.
– This scenario could also enable the altcoin to surpass $30.9, negating the bearish outlook.
Hot Take: Riding the Wave in INJ Price Volatility
Investors should closely monitor the Injective (INJ) price amid increasing skepticism and selling pressure. The price faces challenges in its recovery, with the potential for a breakout or breakdown depending on market conditions.
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