- TokenUnlocks reveals that 93% of Injective token’s maximum supply has been unlocked.
- An upcoming unlocking event on August 21st will release 2.86 million INJ tokens.
- INJ’s price may surge if buyers choose to cash out their holdings.
TokenUnlocks, a prominent analytical dashboard specializing in tokenomics information, recently shared a tweet revealing that a significant portion of the Injective token’s (INJ) maximum supply, specifically 93%, has been unlocked thus far. Furthermore, according to the tweet, an upcoming unlocking event scheduled for August 21st will release an additional 2.86 Million INJ tokens, specifically allocated for Ecosystem Development.
With the imminent token release, a pertinent query arises regarding the potential impact on the token’s price in light of the increased supply. Another consideration is whether buyers will opt to cash out their INJ holdings. Should buyers choose to cash out INJ, there is a possibility of witnessing a substantial surge in price.
Upon analyzing the chart above, it becomes evident that INJ has been experiencing a consistent upward trend since the commencement of 2023. Notably, it has been establishing higher lows, indicating a positive trajectory. Throughout this period, INJ has followed the 3:1 Gann line, occasionally undergoing tests and breaches of the 2:1 Gann fan line. Remarkably, in April 2023, INJ surged remarkably close to the 1:1 Gann line.
However, the market needed more momentum to conduct a thorough test. Consequently, INJ experienced a decline along the 4:1 Gann fan line, briefly finding support on the 3:1 Gann line. Presently, INJ appears poised to find support again on the 3:1 Gann line. If the bears manage to breach the 3:1 Gann line, INJ may seek support from the 4:1 Gann line.
INJ is currently exhibiting an ascending triangle pattern characterized by four touchpoints. However, it is important to note that the ascending wedge formation is not yet fully established, which raises uncertainty regarding a potential breakout for INJ. Given this, it is plausible to anticipate a rebound from the lower trend line around the $7.3 mark, should INJ maintain its current formation.
Suppose INJ maintains its current formation and successfully breaks out from the ascending triangle. In that case, we will likely witness a surge in INJ’s value, potentially reaching Resistance 1 at $14. However, considering the typical breakout pattern observed in ascending triangles, INJ can surpass expectations and reach Resistance 2 at $16.8.
The thesis above is based on the traditional breakout pattern observed in triangles, where INJ experiences a significant spike equal to the triangle’s height during the initial breakout phase. Consequently, buyers in the crypto industry should contemplate initiating their positions at the breakout point while setting their take-profit levels near Resistance 2. Place their stop-loss orders along the lower trend line to manage potential risks effectively.
INJ may initially look to find solace in the trendline support in the event of a crash. However, if this level fails to provide the necessary backing, INJ could experience a more significant decline towards Support 1 and 2.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
