INJ price rose by 3.6% on Tuesday, Sept. 2, as investors cheered the ongoing growth of the Injective Digital Asset Treasury, which will be used to accumulate the token.
Summary
- Injective price could be at risk of a drop in the near term.
- It has formed a rising wedge chart pattern on the daily chart.
- The Injective Digital Asset Treasury with $100 million was launch.
Injective (INJ) rose to $12.90, up by over 4% from its lowest point this week. It remains down by over 60% from its highest point in November last year.
INJ price rose after the Injective Digital Asset Treasury, which has $100 million in assets, continued to attract investors. Some of the top companies include FalconX, Monarq, Canary Capital, and Kraken. These firms manage over $30 billion in assets under management.
The launch comes as more companies are accumulating cryptocurrencies. There are over 100 public companies with almost 1 million Bitcoin (BTC) in their holdings. Companies have also bought top tokens like Ethereum, Tron, and XRP.
INJ price also reacted to the potential for a spot Injective ETF. The SEC has opened the comment period for the INJ ETF, a move that would lead to more demand for the coin.
The challenge, however, is that Injective remains a small player in the crypto industry. DeFi Llama data shows that the network has a total value locked of just $80 million, down from over $158 million last year.
Injective handled just $898,000 in decentralized exchange volume in the last 24 hours, while the stablecoin volume stood at $26 million.
INJ price technical analysis
The daily time frame shows that the INJ price peaked at $16.46 in August and then dropped to a low of $12.1. It has moved slightly below the 50-day and 100-day exponential moving averages.
Injective has also formed a rising wedge pattern, comprising two ascending and converging trendlines that are about to meet. The two lines of the MACD have moved below the zero line, a bearish sign.
Therefore, the token will likely have a bearish breakout, potentially to support at $10, down about 21% from the current level. The alternative scenario is that the coin rises and retests the upper side of the channel at $16.46.
