January witnessed a Fear of Missing Out (FOMO) surge in the altcoin market, with INJ Coin standing out as a significant gainer, rewarding investors with over 100% returns. The coin’s performance was bolstered by a combination of AI and DeFi excitement, particularly after the FTX collapse which increased investor interest in DeFi projects. INJ Coin, which merges AI and DeFi, experienced substantial price increases due to the hype surrounding these two sectors.
The price hike of INJ token can also be attributed to the interest from airdrop hunters. Analyst Crypto Kaduna highlighted that multiple projects built on the Injective Protocol attracted investors seeking airdrop gains. With the ongoing interest in AI, the demand for INJ Coin could remain robust in 2024, spurred by the anticipation of more airdrops.
However, INJ Coin’s price, currently in the overbought zone, may face a correction for two reasons. Firstly, the Relative Strength Index (RSI) has been above 70 throughout December, indicating a potential pullback. Secondly, the price struggles to break the $42 resistance level, suggesting a possible downturn.
Another correction factor could be the potential “sell the news” drop following a January spot Bitcoin ETF approval, which might drag altcoins down. A pullback from the rising trend line resistance could risk a decline towards the $18 support level, previously a resistance in November 2023 and September 2021.
Weekly charts show profit-taking above $41, with support levels at $35 and $30. The key support zone is between $18 and $18.5, with the next threshold at $15.2. Investors are closely monitoring these levels as they consider the coin’s future trajectory amidst the ongoing market dynamics.