Is INJ About to Pull Off a Major Breakout? Recent On-Chain Data Revealed Some Interesting Findings

INJ, the native token on Injective protocol, recently noted a surge in token volume. The volume figure surged as high as $741.29 million in the last 24 hours

Injective’s (CRYPTO: INJ) native token seems to be on the verge of a breakout as recent on-chain data reveals some interesting findings.

Here's what you need to know:

Crypto Liquidity Rotation: As BTC's dominance continues to decline, liquidity is shifting toward other cryptocurrencies and tokens. Investors are seeking those assets with strong upside potential, especially those that have underperformed recently.

INJ Volume Surges: Among these assets, INJ has recorded a massive surge in token volume. With a staggering $741.29 million in volume over the last 24 hours, INJ is seeing its highest volume in the last eight months and second-highest in 2024.

This surge in volume indicates a lot of trading activity involving the INJ token this week. It's not surprising considering the Injective network's high social activity.

A spike in Injective social activity suggests that the network and its native token gained popularity and visibility this week. But does this necessarily translate to bullish momentum?

INJ Retests Noteworthy Resistance Level: The volume surge might be related to its recent bullish momentum. In fact, INJ surged by 14.35% during Tuesday’s trading session. This price uptick pushed into its previous support and resistance zone around the $31 price range.

However, the token has since pulled back by 6.07% to trade at $28.89 at press time.

The bearish outcome is further supported by observing negative INJ spot flows over the last few days, indicating that investors have been taking profits.

The surge in spot outflows confirms the short-term profit-taking, reducing hopes of a major breakout. Injective could still be considered undervalued at recent highs.

It's also worth noting that Injective’s Open Interest in the derivatives segment is still quite low, which could explain why it still struggled to break through the recent resistance.

INJ's Open Interest in the last 24 hours peaked at $176.32 million, which is considerably lower than its peak Open Interest of $308.25 million on March 13.

The lack of a strong TVL comeback might be a sign that investors have not been quite as optimistic, despite the volume surge.