Injective (INJ) price has retreated sharply in the past few weeks as the crypto industry saw weaker demand. The token retreated to about $25 on Tuesday, which is about 52% below its highest level this year. This retreat has given it a market cap of over $2.36 billion.
Injective’s demand wanes
Injective is a leading player in the blockchain industry that aims to become a better alternative to networks like Ethereum and Solana. Backed by Panterra and Mark Cuban, the network focuses on the finance industry.
Injective has been used to build several applications, which has helped to push its total value locked (TVL) in DeFi to almost $150 million. The top players in the ecosystem are networks like Hydro Protocol, Dojoswap, Helix, Neptune Finance, and Black Panther.
Hydro Protocol is a liquid staking network that lets users stake and earn returns from their INJ tokens. It has almost 66 users in the network and a total value locked of over $121 million. Think of Hydro as the Lido network for the Injective network.
Helix is the biggest DEX in the Injective network. It is a decentralized exchange that lets users trade digital currencies. Data by CoinMarketCap shows that the network handled over $100 million tokens in the past 24 hours, making it the 20th biggest exchange in the industry.
Meanwhile, Neptune Finance has continued to gain market share in the industry. The network now has over 5,200 users, a 40% monthly increase. Its TVL has also jumped to over $10 million.
Injective token has retreated even as the amount of staked tokens continued rising. Data shows that over 56 million have been staked on-chain.
At the same time, the number of Injective transactions has jumped sharply. The network’s number of daily transactions has jumped to over 2.4 million. Total transactions have jumped to over 600 million.
Injective price forecast
The daily chart shows that the INJ token price peaked at $52.98 in March this year. It has then entered a deep bear market as it dropped by over 50% from its all-time high. The token has crashed below the key support level at $29.40, its lowest point in January.
Meanwhile, the Relative Strength Index (RSI) has formed a bearish channel. Most importantly, the 200-day and 50-day Exponential Moving Averages (EMA) are nearing a death cross. In most cases, this is one of the most bearish chart patterns in the market.
The token has moved between the lower and support of Andrew’s pitchfork tool. Therefore, the outlook for the token is bearish, with the next point to watch being at $18.9, its lowest swing on April 14th.
