Injective (INJ) Token Bounces Back to 2-Month High as Whale Activity Increases

Injective (INJ) token jumped to $24.87 on Tuesday, Oct. 1, up by 10% from its lowest level in August. The token’s rally happened as the futures open interest of the token jumped to its highest point since June 14.

Cryptocurrency exchange token INJ of layer-1 blockchain Injective, which is backed by billionaire Mark Cuban, experienced a surge in activity on Tuesday.

The token price reached $24.87, reflecting a 10% increase from its lowest point in August.

This rally coincided with a rise in the futures open interest of the token, reaching its highest level since June 14.

The open interest on Binance, Bitmex, Bybit, and OKX amounted to over $127 million, significantly higher than the September low of $67 million.

Open interest serves as a crucial metric in the crypto industry, indicating the outstanding futures contracts on an exchange. A higher level of interest often suggests that a crypto asset is more liquid and experiences substantial demand.

Furthermore, data from Santiment highlighted a 456% increase in whale activity for Injective over the past few days.

This surge in participation by large crypto holders indicates their bullish sentiment towards the coin.

Injective also witnessed a remarkable increase in the number of on-chain transactions within its network, reaching over 995 million.

The network announced its membership in the Tokenized Asset Coalition last week, which also includes companies like Coinbase and Circle.

However, a key challenge for Injective lies in its weaker ecosystem growth compared to other popular layer-1 networks, such as Sui (SUI), Tron (TRX), and Solana (SOL).

According to DeFi Llama, Injective has a total value locked (TVL) of over $44 million, which has declined from an all-time high of over $77.6 million.

The biggest decentralized exchange on the network, called Helix, had just $31 million in assets and handled $31 million in transactions over the last 24 hours.

On the daily chart, INJ crossed two key resistance levels: the 200-day Exponential Moving Average and the upper side of the descending channel pattern that connects the highest swings since April 8.

The two lines of the MACD indicator moved above the zero line, while the Relative Strength Index approached the overbought level of 70.

Additionally, an inverse head and shoulders pattern emerged, suggesting further upside in the near term. If this occurs, the next point to watch will be $32.81, which was the highest level on June 12.