Injective (INJ) Breaks Out of Descending Channel, Signaling Bullish Market Sentiment

This week's Injective [INJ] burn saw over 11,000 tokens, valued at more than $280K, permanently removed from circulation, amplifying Injective's

Injective (INJ) price analysis for the week showcases a burn of over 11,000 tokens, valued at more than $280K, which are permanently removed from circulation.

This burn is amplifying Injective's deflationary impact, a crucial factor in boosting bullish sentiment among traders.

Moreover, INJ's price recently broke out of a long-standing descending channel, further igniting optimism in the market.

As the dust settles, market participants are keeping a close watch to see if this momentum can sustain itself, potentially pushing INJ toward higher targets.

Injective's (INJ) price analysis for the week highlights a burn of over 11,000 tokens. These tokens, valued at more than $280K, are permanently removed from circulation, bolstering Injective's deflationary impact.

This measure is crucial in boosting bullish sentiment among traders, especially as INJ's price recently broke out of a long-standing descending channel. Now, market participants are watching closely to see if this momentum can sustain, potentially pushing INJ toward higher targets.

INJ/USD price analysis on the daily chart: A breakout from the descending channel

The daily INJ/USD price analysis showcases a breakout from the descending channel, a level that previously capped any upward price movement for months.

This breakout, coupled with the token burn and technical indicators, is setting the stage for a potential bullish rally.

Now, let us look at the price movements in more detail for a clearer understanding.

INJ/USD price analysis: A closer look at key levels

The daily INJ/USD price analysis showcases a shift in market sentiment, with buyers now reclaiming the $28.44 resistance level.

This level serves as a critical psychological and technical threshold in the market structure.

Hence, traders are watching closely to see if INJ can sustain levels above $28.44, which could propel the token toward its next significant target at $51.90.

INJ/USD price analysis: Technical indicators support the bullish narrative

Furthermore, technical indicators are reinforcing this bullish narrative. The Average True Range (ATR) reveals increased volatility, suggesting heightened interest and potential for sharp price moves.

Additionally, the moving average crossover (MA 9 over MA 21) has provided a bullish signal, further strengthening confidence in INJ's potential for continued gains.

INJ price analysis: On-chain metrics hint at caution

However, on-chain metrics reveal a subtle caution. The price-DAA (Daily Active Addresses) divergence currently shows a -171.49% difference, suggesting that price movement outpaces network activity.

While this could raise concerns, the strong technical setup and ongoing token burn may counterbalance this divergence.

Therefore, if buying momentum continues, this divergence may hold less weight for bullish traders.

INJ price analysis: Market sentiment remains balanced but leans bullish

Finally, the INJ long/short ratio, nearly balanced with shorts at 50.38% and longs at 49.62%, reflects a cautiously optimistic sentiment.

Traders are aware of the recent breakout but are still cautious, waiting for confirmation that the $28.44 level can hold as new support.

However, as confidence grows, this sentiment may shift more decisively in favor of the bulls, particularly if INJ sustains levels above $28.44.