Key Takeaways:
- Injective Protocol announced the burning of $50,000 worth of tokens.
- INJ price rallied 43% in less than 3 weeks to recover June’s losses.
NEW DELHI (CoinChapter.com) — Blockchain platform Injective Protocol’s price has recovered from its losses in June with a 43% jump from June 10’s low of $5.41.
A bullish cue for the INJ token comes from Injective Protocol announcing plans to burn $50,000 worth of tokens in the “coming days“.
Injective Protocol claimed the upcoming burn event will be “one of the largest.“
Moreover, the blockchain platform noted that as the number of dApps on Injective increases, the burn events would grow. Traders consider burn events bullish signals, as the decline in the circulating supply should ideally translate into a price increase for the asset if the demand remains the same.
Another bullish cue for the token comes from the Injective Protocol price forming a bullish technical pattern called the ‘Bull Flag.‘
Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
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Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, the INJ token price might rally to $47, a jump of over 511% from current price levels.
INJ Token Price Continues To Rally
Meanwhile, the INJ token price rallied 13.5% on June 26 to reach a daily high near $7.72 before retreating. The Injective Protocol price flipped 20-day EMA (red wave) and 50-day EMA (purple wave) resistance into support, which the bulls seem keen to hold.
If the uptrend continues, INJ price might rally to the $8.1 resistance. Furthermore, breaking and consolidating above the immediate resistance might help the Injective Protocol price target the resistance near $9.3 before downside corrections pare gains.
Conversely, if the uptrend breaks down, INJ coin price might drop to its support near $7.1. Moreover, breaching the immediate support level could result in Injective Protocol price testing the 100-day EMA (blue wave) support near $6.23 before recovering.
The RSI for the INJ token price remained neutral, with a value of 59.85 on the daily charts.
