INJ Price Faces Potential Decline Despite Launch of $100 Million Injective Fund

Injective's INJ token saw a 3.6% increase on September 2, buoyed by the news surrounding the new $100 million Injective Digital Asset Treasury. This fund aims to acquire INJ directly from secondary markets, attracting investments from significant players in both traditional and crypto finance. Despite the positive movement, concerns remain about the token's future performance amid declining network activity.

Key Takeaways

INJ token price increased by 3.6% following the launch of a $100 million fund.
The Injective Digital Asset Treasury aims to buy INJ tokens directly from the market.
Major investors include companies like FalconX and Kraken, managing assets exceeding $30 billion.
The cryptocurrency token remains vulnerable to potential future declines.
Market data suggests a bearish trend with the possibility of a price drop to around $10.

INJ price faces potential decline despite launch of $100 million Injective fund

Main Content

On Tuesday, September 2, the price of INJ rose by 3.6%, reaching $12.90 amid excitement surrounding the Injective Digital Asset Treasury, which is aiming to accumulate the INJ token. Despite this uptick, the token is still down by over 60% compared to its peak in November of the previous year.

The increase in INJ price correlates with the ongoing success of the $100 million Injective Digital Asset Treasury, which has captured the interest of several key investors. Notable firms such as FalconX, Monarq, Canary Capital, and Kraken, which collectively manage assets totaling more than $30 billion, have contributed to this fund.

The objective of this new treasury is straightforward: to use all net proceeds for the acquisition of $INJ tokens from secondary markets.

As part of a broader trend, various companies are increasingly investing in cryptocurrencies. Currently, over 100 public companies own nearly 1 million Bitcoin in total, along with significant holdings in other key digital currencies like Ethereum, Tron, and XRP.

The INJ price also reacted positively to the potential development of a spot Injective ETF. The U.S. Securities and Exchange Commission (SEC) has opened a comment period regarding this ETF proposal, which could lead to increased demand for the INJ token.

However, significant challenges remain since Injective holds a relatively modest position within the cryptocurrency market. According to data from DeFi Llama, the total value locked in the Injective network is a mere $80 million, down from over $158 million last year. Over the last 24 hours, Injective recorded just $898,000 in decentralized exchange volume, while the volume for stablecoins stood at $26 million.

Examining the daily chart, it’s evident that the INJ price experienced a peak of $16.46 in August but has since declined to a low of $12.1. Currently, it is trading slightly beneath the 50-day and 100-day exponential moving averages.

Moreover, Injective has formed a rising wedge pattern characterized by two ascending and converging trendlines that are on the verge of converging. The MACD lines have dipped below the zero line, indicating a bearish trend.

As a result, the token is expected to undergo a bearish breakout, potentially testing support levels around $10, which would represent a decline of about 21% from its current price. On the other hand, there is also a possibility for the coin to increase and retest the upper resistance level at $16.46.