Injective price braces for volatility ahead of nearly $150 million worth of INJ token unlocks

  • Injective price could record volatility soon as 3.67 million INJ tokens worth 148.72 million are due to flood markets in a cliff unlock.
  • Token allocation to the team and investors may not inspire immediate profit booking, but increased supply will definitely impact markets.
  • A similar event on August 21 influenced the AI crypto coin’s price with significant fluctuations before and after the unlocks.

Injective (INJ) price has been trading within a range over the past several days, consolidating within the confines of two levels with profit taking and investors buying the correction keeping INJ within range. The AI crypto coin, which is built atop the Cosmos blockchain cold register increasing volatility soon with a token unlocks event due on January 21.

Also Read: Injective price hits new all-time high at $39.97, INJ sustains uptrend despite profit-taking

Injective price prepares for massive token unlocks

Token unlocks are generally considered to be a bearish event since the market witnesses a surge in the supply of an asset. With the increase in supply and static demand, the value of the asset decreases, and this generally results in the price dropping.

On January 21, the Injective network will unleash 3.67 million INJ tokens to the market, worth $148.72 million at current rates. The volume of unlocks constitutes 4.33% of the network’s entire supply with allocations going to advisors and the team, with the latter expected to receive the lion’s share of the allocation.  While these recipients may not be quick to cash in, some selling pressure is expected nonetheless.

INJ token unlocks

Injective price outlook with millions’ worth INJ tokens due to flood markets soon

Injective price has been consolidating between the $31.00 and $43.51 levels since December 20, a wide range that could soon narrow with expected increasing volatility. The token’s price is moving within the confines of the Bollinger indicator, sitting atop the support offered by the centerline of the indicator at $38.49 while confronting its upper band at $42.74.

The Relative Strength Index (RSI) is southbound, showing falling momentum, and could soon cross below its signal line (yellow band), marking a bearish crossover if the trajectory sustains. The Moving Average Convergence Divergence (MACD) is also moving below the signal line (orange band) after crossing below it on December 27. These show that the odds favor the downside.

If the bears have their say, Injective price could lose the support due to the centerline of the Bollinger indicator, potentially tagging its lower band at $34.24. In the dire case, the slump could see INJ test the $31.00 support level.

INJ/USDT 1-day chart

On the flip side, increased buying pressure could send Injective price north, likely clearing the upper Bollinger band at $42.78 before tagging the $43.51 resistance level. A break and close above this level, which would start as a liquidity collection exercise, could see INJ record a higher high and potentially reach the $45.296 range high, standing 25% above current levels.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

PEPE hits new all-time high, meme coin could extend gains

PEPE hits new all-time high, meme coin could extend gains

PEPE hit a new all-time high at $0.00001725 on Monday, May 27. The frog-themed meme coin noted a surge in active addresses and social dominance amidst rising price. 

More PEPE News

Fantom price could rally 20% but needs to test major support level first

Fantom price could rally 20% but needs to test major support level first

Fantom (FTM) price has lost some steam after the sharp increase registered from May 15 to May 20 but looks poised for further gains, technical indicators and on-chain data show.

More Fantom News

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

Crypto intelligence tracker Lookonchain identified a large wallet investor who has accumulated FLOKI (FLOKI) and MAGA TRUMP (MAGA) tokens, in exchange for Ether, since April 8. 

More Cryptocurrencies News

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

Ripple (XRP) holders are awaiting a ruling in the Securities and Exchange Commission’s (SEC) lawsuit against the payment remittance firm. A court ruling was awaited in May 2024, however there is no update, as of Monday, May 27. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis