Injective Protocol Could See a 51% Surge Soon: Here’s What’s Behind It
Injective Protocol has been showing promising signs of a potential uptrend in June, as the price of its native token, INJ, surged by almost 37% month-to-date, reaching a peak of around $31.7 on June 13.
Despite a slight dip in the INJ price on June 13, there are several indicators pointing towards a bullish future for the token.
Accumulation by Whales Signals Confidence
Recent data on whale holdings suggests that whales holding between 10,000 and 100,000 INJ tokens have been actively trading and then consolidating their positions, indicating a potential setup for future price movements.
By mid-June 2024, these whales had stabilized their holdings at around 2.073%, showing their confidence in the token’s future growth potential.
Mid-sized whale investors, holding between 100,000 and 1,000,000 INJ tokens, have also shown a steady increase in their holdings from February to March, indicating a long-term belief in the value of INJ.
The largest whale holders, with holdings between 10,000,000 and 100,000,000 INJ tokens, accumulated significantly in late January and mid-April 2024, followed by profit-taking actions, suggesting anticipation of future price hikes.
Technical Analysis Points to Upside Potential
Another positive sign for the INJ token is the formation of an ‘inverse head and shoulders’ pattern, indicating a potential 51% upside target.
This pattern typically consists of three consecutive bottoms – two shoulders and a head in between – all connected by a neckline. If the token breaks above this neckline, it could see a substantial surge, potentially pushing the INJ/USD exchange rate to $0.901.
Injective Protocol’s Token Burn Boosts Price
Injective Protocol recently burnt 6 million INJ tokens, reducing the token supply significantly. This scarcity led traders to increase their bullish bets, resulting in a price surge of over 20%, reaching around $33.
Despite a minor correction, the price has remained up by approximately 18.50% post the burn event.
The regular token burns by Injective Protocol, where 60% of trading fees collected in INJ are sent to a dormant address, make the token deflationary and support long-term price appreciation.
The combination of strategic whale activity and token burns presents a strong bullish case for Injective Protocol, with the potential for upward price movement in June. Investors should closely monitor these developments for insights into future price trends.