Key Insights:

• INJ’s falling wedge breakout signals a potential 179% rally with a $36 price target.
• Profit-taking resistance is ahead, as 57% of holders are still underwater at current levels.
• Strong bullish indicators drive momentum, but high RSI warns of potential short-term pullbacks.

Injective Protocol (INJ) has recently shown a strong breakout from a prolonged consolidation phase, as noted by crypto analyst World Of Charts. The chart indicates a falling wedge pattern, a bullish reversal formation, suggesting that INJ has emerged from months of downward pressure. 

This breakout sets the stage for a potential rally, with the projected target around $36, representing a possible gain of approximately 179.12% from the current price level.

Source: X

INJ was trading at $23.62 as of press time, with a 24-hour trading volume of $230.84 million. The token has seen a price increase of 10.51% in the last 24 hours and 14.65% over the past week. With a circulating supply of 98 million INJ, its market cap stands at $2.31 billion. The recent breakout has already delivered a 15% profit, highlighting the upward momentum in the market.

Technical Indicators Point to Continued Upward Movement

The INJ/USDT chart shows strong upward momentum, with prices trading near $23.53. The price has moved above the Bollinger Bands’ middle line, currently at $19.79, and is approaching the upper band, suggesting increased buying pressure. A continued move above the upper Bollinger Band could indicate further bullish momentum, but it also raises caution about potential overbought conditions.

The Aroon indicator reflects a strong bullish signal, with the Aroon Up at 100% and the Aroon Down significantly lower at 35.71%. This setup suggests that recent highs are frequent, indicating that the market is predominantly bullish. 

Source: TradingView

The Relative Strength Index (RSI) stands at 69.23, approaching the overbought threshold of 70, which may lead to short-term pullbacks or consolidation as traders react to the high RSI reading. Additionally, increasing volume during the recent price rise confirms the strength of the breakout and sustained interest from buyers.

On-Chain Data Shows Mixed Profitability Among Holders

According to data from IntoTheBlock, 43% of INJ holders are currently in profit, while 57% are experiencing losses. This balance indicates potential selling pressure if prices continue to rise, as those at a loss may seek to exit at break-even points. 

The data also reveals that a large portion of the token supply—94%—is concentrated among large holders, or whales, who can heavily influence price movements. The concentration of large holders suggests that price volatility could remain high, especially if significant buying or selling occurs.

Source: IntoTheBlock

Most INJ holders (72%) have held their positions for 1 to 12 months, reflecting a relatively new investor base. High-value transactions over the past week totaled $26.49 million, indicating substantial interest from institutional or large investors. This level of activity underscores the growing involvement of bigger players in the market, which may support further price action.

INJ Battles Profit-Taking Resistance

The Global In/Out of the Money chart indicates that 38.46% of INJ addresses are profitable, while 57.31% are not, suggesting potential resistance as prices approach higher levels. A significant number of addresses bought INJ between $24.63 and $30.42, which may create selling pressure as investors look to recoup losses. This zone could act as a barrier to further price increases unless INJ manages to break through these levels.

Source: IntoTheBlock

Conversely, there is strong support from long-term holders who accumulated INJ between $0.68 and $6.98, the most profitable segment of holders. These long-term investors are likely to continue holding, providing stability below the current price. For INJ to maintain its upward momentum, it will need to overcome resistance near $24.63 and sustain buying pressure to avoid a potential pullback.

Overall, the recent breakout and strong market indicators suggest a continued bullish outlook for INJ, with key resistance levels ahead that could challenge its upward trajectory.