Let us first observe the K-line chart below. Since 2023, the price of INJ has climbed from $1.27 on January 1 to $9, an increase of 609%.
As of April 18, 2023, the relevant data of INJ is as shown in the table below:
What is INJ?
Injective Protocol (INJ) is a decentralized exchange (DEX) that provides a range of features, including cross-chain margin trading, derivatives, and currency futures trading. The protocol is a second-layer application built on the Cosmos blockchain. What makes it unique is that it utilizes cross-chain bridge technology to allow users to access and trade cryptocurrencies from different blockchain platforms such as Ethereum and Polkadot.
Unlike other well-known decentralized exchanges such as Uniswap or Bancor, Injective Protocol does not rely on automated market maker (AMM) algorithms to maintain liquidity.
Instead, it uses the concept of an order book, a mechanism that has been widely used in centralized stock and cryptocurrency exchanges for many years.
In this way, Injective Protocol aims to combine the efficiency of traditional banking with the transparency of exchange decentralization. On Injective Exchange, traders can use INJ tokens to pay regular market maker and taker fees instead of paying gas fees per trade. The INJ token also has governance and staking features, which allows Injective Protocol to leverage the proof-of-stake mechanism to enable the development of its blockchain ecosystem.
Resistance and support levels
According to TradingView data, the current support and resistance levels of INJ can be observed as follows:
Currently, the price of INJ is approaching resistance. On April 17, as INJ approached $10, it began to decline, and although the price movement for the day was 12.3%, the overall decline was 2.7%.
From the perspective of other technical indicators, MACD shows an upward trend in INJ price. The MACD line is well above the signal line after a positive crossover. However, the MVRV ratio has moved into high-risk territory, which typically indicates that INJ prices may decline or are about to reach a local high.
For investors holding INJ, it is recommended to continue to maintain a wait-and-see attitude for a few days. If the INJ price continues to fall to $8, consider selling at some profit. If the subsequent price breaks through the resistance level of $10, you can consider whether to add or reduce your position further.
Cause analysis & prediction
So, what is the reason for the continued rise in INJ prices?
Browsing Injective’s official blog, you can clearly see that Injective’s ecosystem is being fully expanded and improved. Since this year, Injective has experienced several important events:
1. Injective announces launch of its $150 million ecosystem plan
On January 25, Injective announced the launch of an ecosystem plan with a total value of US$150 million. The goal of this plan is to promote the further development of Defi and Injective related ecosystems and encourage the participation of more blockchain developers. Several well-known institutions have expressed support for the plan, including Pantera Capital, KucoinVentures, Jump Crypto, IDG Capital, Gate Labs, Delphi Labs, Flow Traders, and Kraken Ventures.
2. Injective Global Virtual Hackathon provides $1 million in prizes and funds
With its new $150 million ecosystem initiative, Injective also announced its first global virtual hackathon, which will provide up to $1 million in prizes and seed funding to support the most visionary Web3 developers. Tencent Cloud’s partnership is the latest news in this hackathon plan.
3. INJ launches liquidity staking
INJ can be used for liquidity staking through the Stride chain, which is a chain dedicated to liquidity staking. This move introduces more uses and utility to the native INJ token, allowing users to earn passive income through staking and participate in the governance decisions of Injective DAO.
4. Integrate multiple networks with Injective to expand the ecosystem
Over the course of this year, a series of projects and platforms, including Solana Assets, Astroport Mainnet, Babylon Testnet, Pyth, and Transak, among others, have tightly integrated with Injective, thereby expanding Injective’s ecosystem and enhancing its competitive advantage in the crypto space.
The author also provides you with priceprediction.net’s forecast data on INJ prices, covering the time period from 2023 to 2024, for your reference: