Can INJ Break Resistance Amid Whale Sell-Offs?
- INJ Whale sell-off triggered price drop amid profit-taking.
- Surge in trading volume suggests heightened interest, but unclear bullish momentum.
A long-term holder of Injective (INJ) recently offloaded 243,699 tokens worth $7.39 million to Bybit and CowSwap, reportedly contributing to price decline over the recent hours. The seller, who had accumulated the tokens between February 2021 and July 2022 at an average price of $10.92, realized a $15.21 million profit—a 2.3x return—over a 3.5-year holding period by selling at peaks in 2023 and 2024, averaging $35.90.
The sale coincided with heightened trading activity, with INJ’s 24-hour volume surging to $741.29 million, the highest in eight months and the second-highest in 2024. Despite this, Injective’s Total Value Locked (TVL) has shown little improvement, raising questions about sustained investor confidence.
Meanwhile, market analysts noted that the trading volume spike aligns with increased social activity around the Injective network. Social engagement typically indicates heightened visibility and interest; however, it does not always translate to bullish momentum.
Earlier this week, INJ saw a 14.35% rally, briefly touching the $31 resistance level before retreating by 6.07% to $28.89 at press time. The pullback reflects profit-taking behavior, as indicated by significant spot outflows, which have dampened hopes of a breakout.
Road Ahead For INJ
Injective’s Open Interest in the derivatives market also remains subdued, peaking at $176.32 million in the past 24 hours—substantially below the $308.25 million peak recorded in March. This muted activity in the derivatives segment signals cautious market sentiment despite the recent volume surge.
The broader context of declining Bitcoin dominance and intensified liquidity rotation in the crypto market suggests that traders are eyeing projects with potential upside. While INJ’s recent rally and heightened trading activity hint at renewed interest, its failure to sustain gains underscores lingering uncertainty about its short-term prospects.
The road ahead for Injective remains contingent on breaking through resistance levels and achieving stronger TVL growth, pivotal for solidifying investor confidence.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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