Injective Token INJ Price Spikes Over 450% YTD, But Beware Of Revenge Selloff

Key Takeaways:

• INJ price spiked 463% in 2023
• Injective’s recent developments could have helped propel the token’s price rally

NEW DELHI (CoinChapter.com) — Injective, an EVM-compatible Layer-1 blockchain in the Cosmos ecosystem, has had a successful year. INJ price rallied 463% YTD in 2023 to form a daily high near $7.05 on April 12.

However, the uptrend put the INJ token price near a multi-month ascending trendline resistance, which has rebuffed its price rally multiple times in 2023. Additionally, the long upper wicks on the INJ token’s daily candles underscore the presence of bears near the trendline resistance.

INJ price swung nearly 11% to form a daily high near $7.05 on April 12 before bears moved in to defend the trendline resistance. Furthermore, the relative strength index for Injective became overbought, clocking at 74.04 on the daily time frame.

Overbought RSI often forecasts an impending trend reversal for an asset, due to which traders consider the pattern a sell signal. Thus, if sellers enter the market, INJ’s price might drop to support near $6.1.

Breaching the immediate support level could force the INJ token price to test the emotional support level from its 20-day EMA (red wave) near $5.

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Conversely, if the Injective token price breaks above the trendline resistance, the INJ price might rally to resistance near $7.3. A break and close above immediate resistance might help the INJ token price target resistance near $8.8 before retreating.

Injective’s Recent Updates

Injective has notched up a number of updates in 2023, such as a partnership with Eclipse to introduce the first interchain Solana Sealevel Virtual Machine (SVM) called the Cascade. The SVM would allow developers to build and utilize the Injective blockchain to deploy Solana dApps.

Cascade would introduce the first iteration of leveraging interchain security for rollups.

Furthermore, Injective became the first blockchain with the Cosmos IBC standard to integrate the Pyth Network, an oracle that publishes financial market data to multiple blockchains. The integration would help introduce institutional data to the ecosystem.

Moreover, the partnership would make Injective the first Cosmos chain where developers can build using Pyth data.

In March, White Whale announced an airdrop of its WHALE tokens to Injective stakers.

On April 10, developers released an upgrade for the Injective mainnet. The latest update would add improved smart contract capabilities to the mainnet, aggregated user accounts, automations, etc.