- Injective recorded a surge in volumes as excitement took over the network
- INJ found favor with the bulls, but the rally could soon see some selling pressure
The Helix DEX has paid a lot of attention to the Injective ecosystem so far. In fact, the latter has also seen significant volume growth, as evidenced by the volume increase over the past 24 hours.
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The Injective order book reportedly generated more than $46 million in trading volume in the last 24 hours alone. This outcome builds on the healthy volume growth we have seen in recent weeks. The rising on-chain volume could reportedly be related to multiple upcoming dapps deployed on Injective.
Apparently the @HelixApp_ pre-launch futures release did its job: @Injective_ daily trading volume is increasing!
By delegating your $INJ tokens, you can contribute to a more stable network that supports trading activities, the #Injective blockchain, and earn about ~16%… pic.twitter.com/DQSsH6loxl
– Iryna | Everstake
(@iryna_everstake) October 20, 2023
The reality of Injective’s volume is that it has been growing in recent weeks. This was largely due to the hype surrounding the pre-launch futures. It could also have been caused by excitement over the staking rewards of INJ tokens.
Let’s take a look at Injective’s latest volume performance to better understand its recent outcome. Think about this: Injective’s on-chain volume has been on the rise since mid-October, with the same recently spiking to a new monthly high on October 19th.
Source: Santiment
The recent volume increase correlates with Injective’s recent market capitalization. The market cap rose from a low of $606.3 million on October 11 to $737 million in the past 24 hours. Injective’s home currency INJ also rallied 39% over the same period.
INJ could undergo a bearish retracement
INJ was exchanging hands at $8.89 at the time of writing, and there are signs that short-term profit-taking is also possible. The first major reason is that the latest rally has just entered overbought territory on the charts.
Source: TradingView
Some of INJ’s on-chain metrics also appear to be in line with selling pressure expectations. For example, the supply of top addresses has fallen slightly over the past three days, indicating that some top whales are making profits.
Weighted sentiment also fell over the same period, indicating that a growing number of traders are expecting a pullback.
Source: Santiment
INJ’s supply distribution also seemed to demonstrate a similar observation. In fact, addresses with over 1 million coins recently showed signs of some outflow, indicating that there is a good chance that selling pressure will prevail in the coming days.
Source: Santiment
Read more about Injective’s 2024 price forecast
Here it is also worth noting that INJ bulls have maintained strong resilience against rising selling pressure so far. This could be due to the recently observed shift in market sentiment from a short-term to a long-term trend.
There is also still some room for more upside potential before the price reaches its next resistance range above the $9.6 price level.
