Injective flips key resistance as open interest hits 3-month high

Mark Cuban-backed tier 1 network Injective rebounded to its highest level in more than two months as whale activity increased.

The Injective (INJ) token rose 10% from its August low to $24.87 on Tuesday, October 1. The token’s rise came as the token’s futures open interest reached its highest point since June 14.

It had over $127 million in open interest, mostly on Binance, followed by Bitmex, Bybit and OKX. Interest was also significantly higher than September’s low of $67 million.

Open interest is an important metric in the crypto industry because it indicates the amount of outstanding futures contracts on exchanges. A higher interest level may indicate that a crypto asset is more liquid and in significant demand.

Injection price | Chart by CoinGlass

Meanwhile, data from Santiment shows that whale activity in Injective has increased over the past few days. There was a 456% increase in whale activity, indicating that participants are bullish on cryptocurrency.

Injective also rose as the number of on-chain transactions on its network rose to over 995 million.

995 Million On-Chain Transactions.

Closer than ever to 1 BILLION! ⏳

— Enjektif 🥷 (@enjektif) October 1, 2024

Last week, the network also joined the Tokenized Asset Coalition, which includes companies like Coinbase and Circle.

The main problem with Injective is that its ecosystem growth is weaker than other popular layer 1 networks such as Sui (SUI), Tron (TRX) and Solana.

According to DeFi Llama, Injective’s total value has increased from an all-time high of $77.6 million to over $44 million. Helix, the largest decentralized exchange, has only $31 million in assets and processed $31 million in transactions in the last 24 hours.

Injective broke through two key resistance levels INJ price chart | Source: TradingView

Injective has risen above the 200-day Exponential Moving Average on the daily chart, which is generally a positive sign.

It also broke above the upper side of a descending channel pattern that connects the highest swings since April 8.

The Relative Strength Index approached the 70 overbought level as two lines of the MACD indicator moved above the zero line. It also formed an inverted head and shoulders formation, indicating further upside in the near term. In such a case, the next point to watch would be the June 12 high of $32.81.