Injective (INJ) has recently drawn significant attention from investors and analysts alike, with predictions suggesting a potential 214% price rally. This optimistic forecast is underpinned by a falling wedge pattern on the 3-day chart and key on-chain data. Here’s a closer look at the factors contributing to the potential breakout and what investors should be aware of.

Falling Wedge Pattern Suggests Major Upside

Crypto analyst Captain Faibik has highlighted a falling wedge pattern on INJ’s 3-day chart, which is traditionally considered a bullish signal. The falling wedge pattern occurs when the price consolidates between two converging trend lines, indicating a potential for a substantial breakout once the price moves beyond the upper trend line.

At present, INJ is priced at $17.77, reflecting an 8.08% increase in the last 24 hours and a 5.04% rise over the past week. With a market capitalization of $1.73 billion and a circulating supply of 98 million tokens, the asset is showing increased investor interest.

Faibik’s analysis suggests that if the falling wedge pattern holds, INJ could experience a dramatic 214% rally. This projection is based on historical performance of similar patterns and technical indicators that have previously signaled significant price movements.

Technical Indicators Point to Consolidation

A detailed examination of INJ’s daily chart by AMB Crypto reveals that the token has been consolidating above the middle Bollinger Band at $17.77. The narrowing of the Bollinger Bands indicates reduced volatility, which could be a precursor to a larger price movement.

The Moving Average Convergence Divergence (MACD) indicator also presents a bullish crossover, with the MACD line positioned above the signal line. This crossover typically suggests upward momentum. However, the MACD histogram remains close to neutral, indicating that the bullish trend is still in its early stages and may require further confirmation.

On-Chain Data and Holder Sentiment

On-chain data provides a mixed outlook for INJ holders. Currently, 28.14% of addresses are “In the Money,” meaning they purchased INJ at lower prices than the current $17.77 level. In contrast, a substantial 67.32% of addresses are “Out of the Money,” having acquired INJ at higher prices, particularly between $18.61 and $24.85.

Despite this, the largest group of profitable buyers acquired INJ between $6.98 and $12.12. This suggests that a significant portion of holders remain optimistic about the token’s future potential. Only 4.54% of addresses are near breakeven, further supporting the notion that INJ might be poised for a major price move.

De Fi Activity and Market Liquidity

Data from Defi Llama highlights that the Total Value Locked (TVL) in Injective’s ecosystem is $37.06 million, with $22.45 million held in stable coins. This indicates a steady level of activity and liquidity within the DeFi space, which could contribute to the anticipated breakout.

The platform also recorded a 24-hour trading volume of $10.75 million, with inflows totaling $133,190 during the same period. This consistent interest and liquidity in INJ are positive indicators that may help fuel the projected price rally.

Conclusion

The current technical analysis and on-chain data suggest that Injective (INJ) could be on the verge of a significant price breakout, potentially rallying by 214%. The falling wedge pattern, coupled with positive technical indicators and robust DeFi activity, creates an optimistic scenario for the asset.

Investors should remain aware of the inherent risks and volatility associated with cryptocurrency investments. While the potential for substantial gains is enticing, it is essential to monitor market conditions and technical signals closely. As always, thorough research and cautious investment strategies are crucial in navigating the dynamic cryptocurrency market.

With the current bullish signals and strong market interest, INJ may well be preparing for a major move. Investors keeping a close eye on these indicators may find significant opportunities as the asset approaches its next potential breakout.