Key Takeaways:
- AI crypto coin INJ threatens a 20% drop before the week’s end.
- Several on-chain metrics and technical indicators support the claim.
- The Injective protocol launched a new NFT marketplace
YEREVAN (CoinChapter.com) — AI crypto coin Injective (INJ) saw a 10% weekly bullish move from a significant support line, reaching $5.97 on June 19. However, INJ exhibited early signs of reversal despite leading the AI crypto sector rally with a 400% year-to-date surge.
INJ bearish technicals signal a 20% drop
In detail, the AI token has been trading above the mentioned support line since Jan 2023. However, while the price action established higher lows, the relative strength index (RSI: purple graph at the bottom) consistently printed lower lows.
Such divergence between the two metrics typically indicates fizzling expectations from investors and leads to a price decline. If INJ/USD fell, the next available time-proven support would be $4.8, or 20% lower than the current value.
Additionally, the AI crypto coin’s trading volumes have declined since Jan 2023, adding to the bearish expectations. The MACD oscillator is in a bearish crossover phase on the daily and the weekly charts, hinting at losses coming Injective’s way.
Also read: Crypto AI Tokens Soar On The Back of Nvidia Success
Notably, the described scenario could pan out only if INJ breaks below the up-trending support line, which has not happened since 06:00 UTC.
On-chain metrics agree with IN reversal scenario
On-chain metrics concur with the grim technicals. According to DefiLlama, the Injective trading volumes have been dropping since June 8.
Despite the price surge, the number of large transactions has also declined in the previous weeks.
According to the IntoTheBlock platform, over 58% of Injective investors are currently at a loss despite the price surge. Thus, they are not likely to sell before at least breaking even. The upcoming sessions will show whether they prefer to hold on to their assets or quit INJ.
Several crypto personalities on Twitter preferred the latter.
New NFT Marketplace on Injective
According to the announcement on June 18, Injective successfully launched a new NFT Marketplace named Talis. However, it is too soon to tell if the Marketplace can make a real difference for the Injective Protocol shortly.
