Key Insights:
- The price was rejected and not able to sustain above the level following a short attempt to breach above the $15 resistance.
- Injective established itself as a leader in the real-world asset (RWA) tokenization ecosystems.
- Injective was gradually decreasing the supply and increasing scarcity.
Injective crypto reverted back within its established horizontal channel between around $11 and $15.
Injective Crypto Price Action
Following a short attempt to breach above the $15.00 resistance, the price was clearly rejected and was not able to sustain above the level. This nullified the breakout and INJ fell back within the range.
At the last 4-hour candle, the price of INJ was at $12.97, slightly above the mid-level support area at around $12.91, which is defined by the 50-period SMA. This field has been fluctuating in the recent weeks.
Should INJ violate and close below $12.91 with follow through, the momentum may swing violently to the downside, probably towards the bottom of the channel at the $11.00 area.
The 9-period EMA at $13.40 had a downslope, and that showed diminishing bullish momentum. Volume was not high, still proving market indecision.
Should INJ however manage to defend the $12.91 mid-channel level and retake the EMA at $13.40 however, a re-test of the upper channel boundary at $15.00 could be seen.
Traders may watch out to a clean candle close below $12.91 to look at short setups and a retake of $13.40 would re-instill near-term bullish bias.
INJ Innovation On RWA
Injective has established itself as a leader in the real-world asset (RWA) tokenization ecosystems.
They have created a high performance on-chain infrastructure that allows traditional financial assets to natively communicate with one another on-chain.
A recent addition of its RWA Module was a breaking point – introducing stocks, bonds, treasuries, and commodities to the decentralized world with compliance, transparency, and composability baked in.
That was not the only innovation. Injective has introduced Assets, a revolutionary permissionless framework that enables anyone to tokenize real-world assets and exchange them on-chain.
This opened access to the financial markets and broke the monopoly that the centralized intermediaries had.
Now, using its Helix DEX, anyone can trade leading world stocks, such as Apple, Tesla, and Google, currencies, such as the Euro and British Pound- 24 hours a day, without market open or close or intermediaries.
This advancement in on-chain finance practically merges the traditional financial sector with decentralized finance (defi), expanding the possibilities of digital transactions.
As injective will have more listings, it is making the building blocks of a programmable, financially accessible global ecosystem.
INJ Burn Rate
Native burn chart of Injective shows a steep increase in the weekly burns in the course of 2024, reaching its peak in the middle of the year, when more than 30K INJ will be burned in a single round.
This direction is associated with the 60% fee burn mechanism of the protocol that involves an auction mechanism to burn tokens and make them leave the circulation.
Already having burned 6.6 million INJ (worth over $31 million and over $345 million at ATH), Injective is gradually decreasing the supply and increasing scarcity.
This thrust has been accompanied by the growth of Injective in tokenized assets and real world assets (RWA) trading which has pushed transaction volumes and exchange activity to increase.
The infrastructure of the blockchain (650ms block time and 0.0011 gas per transaction) is high speed and can achieve massive scale, with more than 2 billion overall transactions.
The weekly burns were more stable as more users become active, and lately, they were around 8.8K INJ.
Provided this trend continues, Injective may become one of the most deflationary chains in all of crypto, which may create long-term bullish pressure on INJ as demand in the ecosystem and supply reduction converge.