Injective (INJ) experienced a 3.6% price increase on Tuesday, September 2nd, driven by the growth of the Injective Digital Asset Treasury. This treasury, which has accumulated $100 million in assets, has been a major attraction for investors. Companies like FalconX, Monarq, Canary Capital, and Kraken, which collectively manage over $30 billion in assets, have been actively participating in this initiative.
The Injective Digital Asset Treasury has been successful in attracting investments from both traditional finance institutions and the crypto community. All net proceeds from this initiative will be used to accumulate the INJ token directly from secondary markets, further boosting its value in the market.
As more companies continue to accumulate cryptocurrencies, the launch of the Injective Digital Asset Treasury comes at a time when the industry is witnessing a surge in institutional interest. With over 100 public companies holding almost 1 million Bitcoin (BTC) in their portfolios, the trend of acquiring top tokens like Ethereum, Tron, and XRP is on the rise.
Additionally, the potential for a spot Injective ETF has also contributed to the positive sentiment around the token. The Securities and Exchange Commission (SEC) has initiated the comment period for the INJ ETF, signaling a potential increase in demand for the coin in the future.
Despite these developments, Injective remains a relatively small player in the crypto space. Data from DeFi Llama shows that the network’s total value locked is currently at $80 million, down from its previous high of $158 million. Furthermore, decentralized exchange volume for Injective stands at $898,000 in the last 24 hours, while stablecoin volume amounts to $26 million.
From a technical analysis perspective, the daily chart for INJ indicates a potential bearish breakout. The token’s price peaked at $16.46 in August before retracing to $12.1. It is currently trading below the 50-day and 100-day exponential moving averages and has formed a rising wedge pattern. The MACD indicator also shows bearish signals, suggesting a possible downside to the $10 support level, representing a 21% drop from the current price. Alternatively, a bullish scenario could see the coin retesting the upper channel at $16.46.
Overall, the recent developments surrounding the Injective Digital Asset Treasury and the potential for an INJ ETF have sparked investor interest in the token. However, the technical indicators point towards a possible bearish trend in the near term, highlighting the need for caution when trading INJ.