The cryptocurrency Injective (INJ) is showing signs of recovery after recently dropping below the crucial $35 support level, reaching a monthly low. This turnaround in Injective’s trajectory can be attributed significantly to the involvement of crypto whales, who have recently demonstrated substantial interest in the asset.
Currently, Injective is trading around $34, experiencing a correction of over 16% in the past week. Despite this decline, there has been a notable increase in network activity, evident in the surge of daily active addresses (DAA) associated with Injective. When the price of a cryptocurrency dips but its DAA rises, it often signals a buying opportunity in the market. This seems to be the case with Injective, as the altcoin exhibits a strong buy signal over the past week.
Crypto whales, who are influential players in the cryptocurrency market, appear to have seized this opportunity. They capitalized on the price dip by acquiring a significant amount of INJ – over 740,000 units within a single day. This acquisition, amounting to approximately $24.8 million, has increased the holdings of whale addresses to a total of 10.69 million INJ. Given the known influence of whale activities on cryptocurrency prices, this hefty investment is expected to have a positive impact on INJ’s value.
The current focus for Injective is overcoming the $35 resistance level. If successfully breached and converted into a support threshold, this could pave the way for further recovery, potentially pushing the price of INJ towards the $40 mark.
However, the cryptocurrency market is known for its volatility, and a shift in broader market sentiment could impact Injective’s trajectory. Should the resistance level hold and bearish cues emerge, INJ might see a decline towards the $30 level. A breach below this support floor would negate the current bullish outlook and could lead to a further price drop, possibly reaching down to $28.
This dynamic movement in Injective’s market position, buoyed by significant whale investments, underscores the ever-changing landscape of the cryptocurrency market, where large-scale transactions can rapidly alter the trajectory of an asset.
