NOIDA (CoinChapter.com)— Injective Protocol shows signs of a potential rally in June, with prices of the project’s native token, INJ, rallying nearly 37% MTD to reach a daily high near $31.7 on June 13.
Although the INJ price dropped nearly 12% on June 13, several cues suggest the token’s future outlook remains bullish.
Whale Movements Indicate Accumulation
Recent data on whale holdings reveal the strategic accumulation of INJ tokens. Whales with holdings between 10,000 and 100,000 INJ displayed high trading activity and later consolidated their positions. This behavior indicates a preparation phase for potential price movements.
These whales stabilized their holdings around 2.073% by mid-June 2024, suggesting confidence in future gains.
Mid-sized whale investors, with holdings between 100,000 and 1,000,000 INJ, maintained a stable pattern. These investors’ holdings slightly increased from February to March, reflecting long-term confidence in INJ’s value.
The largest of the whale cohorts, holding between 10,000,000 and 100,000,000 INJ, showed significant accumulation around late January and mid-April 2024.
The accumulation pattern followed by profit-taking indicates anticipation of future price increases. Their movements suggest a bullish sentiment among the largest holders, which could increase the price.
Technical Pattern To The Rescue
Another bullish cue for the INJ token is the bullish technical step called the ‘inverse head and shoulders pattern‘
In detail, the inverse head-and-shoulders pattern entails three consecutive bottoms – the shoulders and the head in between. All three dips connect through a mutual Neckline. As the formation progresses, the price action forms the three dips and returns to the neckline.
In detail, the inverse head-and-shoulders pattern entails three consecutive bottoms – the shoulders and the head in between. All three dips connect through a mutual Neckline. As the formation progresses, the price action forms the three dips and returns to the neckline.
Moreover, the pattern predicts a surge if the token conquers the neckline. INJ bulls could jump early 51%, bringing the INJ/USD exchange rate to $0.901. The INJ price is currently near the neckline of the pattern.
Injective Protocol’s Token Burn Reduces Supply
Injective Protocol burnt 6 million INJ tokens, significantly reducing the supply. This move created scarcity, prompting traders to increase their bullish bets. The result was a surge in INJ’s price by over 20%, reaching approximately $33.
Despite a modest correction, the price remained up by around 18.50% since the burn event.
Injective Protocol’s token burns occur regularly as part of their weekly auction. The protocol sends 60% of all trading fees collected in INJ to a dormant address, making the token deflationary. This regular reduction in supply supports long-term price appreciation.
While not all burns coincide with price rallies, this instance benefited from additional bullish catalysts. The broader market conditions amplified the burn’s impact, increasing demand for INJ.
The combination of strategic whale activity and significant token burns creates a robust bullish case for Injective Protocol. The token’s deflationary nature, coupled with increased trader interest, points to potential upward price movement in June.
Investors should monitor these developments closely, as they provide valuable insights into future price trends.
