Injective (INJ) Coin has recently experienced a complex situation after long-lasting impressive performance, hitting its annual low. Despite this, there are promising signals for a recovery. The reduction in active assets hints at decreased selling pressure, supported by data showing fewer INJ Coins being transferred to exchanges.
Why Is Selling Pressure Decreasing?
Another significant indicator supporting the decline in active deposits is the increasing Average Coin Age. This metric, which measures how long INJ Coins are held in wallets, reflects investor sentiment. The rising Average Coin Age suggests that investors are less inclined to sell and are instead accumulating their holdings.
Technical analysis further supports this perspective. Despite the discouraging fluctuations in Bitcoin prices, INJ Coin has managed to rebound from $21.3 and is currently hovering around $23.9. This resilience indicates a potential upward trend if the current conditions persist.
Will INJ Coin Reach New Heights?
INJ Coin has seen its lowest level since the start of the year, but the declining signals are gradually fading. If the upward momentum continues, a new test at $28, which aligns with the 200-day EMA, could reverse the prevailing downtrend. However, this is contingent on Bitcoin’s performance and the overall altcoin market.
Key Takeaways
– Fewer INJ Coins are being transferred to exchanges, indicating reduced selling pressure.
– Increasing Average Coin Age suggests investors are holding rather than selling.
– INJ Coin rebounding from $21.3 to $23.9 hints at potential recovery.
– Achieving $28 could reverse the downtrend if current conditions persist.
However, if Bitcoin’s losses deepen and altcoins face new selling pressure, INJ Coin could also be impacted. Falling below $21.3 could negate the $28 target, leading INJ Coin to seek new lows. Keeping an eye on Bitcoin’s price and macroeconomic indicators remains crucial for investors.