3 Reasons Why Injective (INJ) Price Could Rally 100% by June
Injective Protocol's native token INJ's price has lined up bullish cues that could help the token double its value by June 2024 The post 3 Reasons Why Injective (INJ) Price Could Rally 100% by June appeared first on CoinChapter.
NOIDA (CoinChapter.com) — Injective Protocol (INJ) price has lined up bullish cues that could help the token double its value by June 2024. INJ’s price action in 2024 has been quite vanilla, consolidating between $30 and $45 since the year began.
However, here’s why INJ’s price is poised to rocket out of its consolidation phase soon.
1. INJ Price Form Bullish Flag Pattern
The Injective Protocol token has formed a bullish technical pattern called the ‘Bull Flag Pattern.’
Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
Volume is an essential factor in confirming the pattern’s validity. Typically, volume should be higher on the upward trend and lower during the consolidation phase, with an increase when the price breaks out.
The pattern is completed when the price breaks out of the flag area, continuing the previous upward trend. Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level.
Per the rules of technical analysis, INJ’s price might rally over 145% to reach the theoretical price target near $94 if the Injective Protocol token prices confirm the pattern. The lucrative price target of the pattern could attract buyers to the market, serving as a bullish cue for the INJ token price.
2. Injective Protocol’s TVL Impact on INJ Price
The Total Value Locked (TVL) in the Injective Protocol has witnessed a substantial increase, which can positively indicate the INJ token’s intrinsic value.
TVL is a metric that reflects the total amount of assets staked in the protocol, and its growth often signals rising user adoption and confidence.
Injective Protocol’s TVL has spiked more than 335% since Dec. 2023 to reach $65.4 million on Feb. 28. The growing INJ TVL suggests that the project has enjoyed increased adoption.
Hence, as TVL rises, it can increase demand for INJ tokens used within the Injective ecosystem for various purposes, such as staking and governance. This demand can be a bullish cue for INJ prices, especially when aligned with technical patterns that indicate bullish sentiment.
3. Altseason After Bitcoin Halving
Another bullish cue for Injective price comes from the upcoming Bitcoin halving event.
The relationship between Bitcoin halvings and altcoin seasons isn’t straightforward. Still, insights from various sources suggest a pattern where altcoin seasons often follow significant events in the Bitcoin market, including halvings.
A Bitcoin halving, which happens approximately every four years, significantly impacts the supply side of Bitcoin by reducing the reward for mining new blocks in half. This event can increase speculation and volatility.
After a Bitcoin halving, if the price of Bitcoin experiences an exponential increase and then begins to stabilize or decline, funds may start flowing from Bitcoin to altcoins, leading to what is known as an altcoin season.
During such seasons, altcoins can outperform Bitcoin regarding price gains, offering lucrative opportunities for investors.
After the second Bitcoin Halving in July 2016, ETH (the largest altcoin by market cap) saw an increase of nearly 5,000% between Dec. 2016 and June 2017, while BTC gains during the same period were around 297%.
Ethereum and other altcoins repeated the performance post the third halving event in 2020, with ETH price rallying 1,900% between May 2020 ($219) and May 2021 ($4,380), while BTC price registering gains of 578% during the same period.
Historical patterns have shown that after the initial surge in Bitcoin’s price following a halving, the market enters a period where altcoins start to gain significantly.
However, predicting the exact timing and impact of an altcoin season remains challenging due to many factors. In summary, while altcoin seasons may often follow Bitcoin halvings, the relationship is influenced by a complex interplay of market dynamics, and each cycle can present unique characteristics.
The post 3 Reasons Why Injective (INJ) Price Could Rally 100% by June appeared first on CoinChapter.
