Injective (INJ) has been exhibiting horizontal price movement with a marginal upward trend, suggesting a potential shift in favor of investors. The popular altcoin is anticipating its next token unlock, which could maximize its circulating supply. Despite a recent price increase, INJ experienced a price correction, managing a modest rise above 1% in the last 24 hours. At the time of writing, INJ was trading at $37.41 with a market cap of over $3.1 billion, ranking as the 27th largest cryptocurrency.
CoinMarketCap data showed that INJ’s price correction followed its price rise, with liquidation maps indicating a surge in liquidations as the price hit $41. This led to a bear rally, driving the token’s price down. However, a prominent crypto analyst, Captan Faibik, pointed out the formation of a bullish flag pattern on Injective’s chart, which could signal an upcoming bull rally if the token successfully tests this pattern.
Further analysis of INJ’s daily chart revealed that most market indicators were on a downtrend at the time of writing. Notably, the Relative Strength Index (RSI) and Money Flow Index (MFI) were declining, moving towards neutral levels, suggesting a cautious market sentiment.
The token’s Chaikin Money Flow (CMF) also followed a similar downtrend, hinting at an increased likelihood of a price drop. However, the upcoming token unlock on January 21, 2023, could unlock 3.66 million INJ tokens, potentially influencing the token’s social metrics and indirectly affecting its price positively. Despite this, INJ’s social dominance remained high, and weighted sentiment improved, indicating a prevailing bullish sentiment in the market during this period.