– INJ may have reached a local top due to the difference in social volume cluster and network growth.
– The project’s traction had waned from the initial ascent.
As with any volatile asset, injective protocol [INJ] may undergo corrections following significant price gains. The INJ token, which enables developer incentives, staking, and governance on the network, has gone from $1.2 in January to $9.21 at the time of writing.
Read Injective Protocols [INJ] Price prediction 2023-2024
Not the best points to consider
But can the current trend still be a good buying decision? According to Santiment, INJ was at a level where the price was driven by a position where investors could feel a Fear of Missing Out (FOMO).
In crypto, FOMO is defined as a psychological phenomenon where participants have the urge to jump out of potential profits in a rapidly rising market or asset.
Based on the chain analysis of the platform released on April 17, the 30 days active addresss under Injective rose to a Year-To-Date (YTD) high of 3620.
Active addresses show the number of unique interactions investors have had with a token. This implies that INJ boasted healthy network activity.
However, close review of the data showed that the heap of speculation and transactions surrounding the token did not flare up again until March 28.
Source: Sentiment
And since the INJ price had fallen a bit, investors coming too late to the rally may have come with risks of overvaluation.
The context of declining pleasure
The social volume was also able to increase to the highest level in six months as a result of the price increase on April 14. But at the time of writing, the metric had dropped to a value of 42. Such an instance means that excitement around the token was at its peak.
However, it could also be a good reason for the token reaching a local high. In fact, the network’s growth began to feel the impact of the loss of elation.
This was due to the decline in the statistic, as evidenced by on chain data. A simplification of this position means that the project has no new addresses. Therefore, it lost traction and user adoption could become more and more challenging.
Source: Sentiment
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At the time of writing, INJ was in a mutilated state. In the meantime, the addresses in the store layer have continued to buy. Meanwhile, whales, like previously reportedwere engaged in distribution and sales.
Source: Sentiment
For what it’s worth, INJ has been able to gain 6.41% in the last 24 hours. The volume also increased by 28%. However, the price is still on the verge of correction.
This post Injective Protocol: How an INJ Pullback Could Be Next When FOMO Kicks In
was published first on https://ambcrypto.com/injective-protocol-how-an-inj-pullback-could-be-next-as-fomo-sets-in/
