Injective Token (INJ) has crashed 66% from its year-high of $52 (March 2024) to $17 (Sept 2024). On paper, the crypto has lost beyond all hope. However, there is a lot more than what meets the eye.
INJ has been one of the most successful crypto projects. When the current RWA trend picks up pace, the crypto might become a game-changer.
In this article, we will analyze Injective’s potential, its investability, its fundamental strengths and see what current chart patterns say about it.
Since this cryptocurency isn’t a well-known one like Bitcoin and Ethereum, let’s start with a small introduction.
What is Injective Finance?
Injective is a Layer-1 blockchain that supports core decentralized finance activities like trading, investing, on-chain exchanges, on-chain RWAs, and others.
The chain helps creators bring traditional finance users to the world of decentralized finance. Injective hosts more than 100 such projects on its own layer-1 blockchain.
Recent Price Trends in Injective Finance
Injective finance got along with other cryptocurrencies and rallied for the first three months of 2024. It reached a peak of $52.74 on 14 March 2024. However, the broader markets started correcting soon, and Injective dropped, too.
Since then, the price has been on a downward trend with occasional pullbacks. At press time, Injective traded at a price range of $17, down 67% from its 14 March highs.
Initially, it may seem that the bullish phase for Injective might be over; however, we have a few reasons to believe otherwise.
Here’s another strong project: DOGS that might soon become one of the top 5 memecoins.
Why Are We Bullish On Injective?
The altcoin markets are about to witness one of the best rallies in 2024 due to the convergence of three major factors.
The US Fed is about to make a 0.75% rate cut this year, starting with a 0.25% to 0.5% initial rate cut (around September end) and probably the second one at 0.25%. The fears of recession and the Fed’s comment in the last Jackson Hole Symposium strongly indicated toward this.
A rate cut after four and a half years (03 March 2020) would rejuvenate the markets with high liquidity. Further, the impact of a rate cut might even send the entire crypto market towards a new all-time high.
Typically, when new liquidity enters the markets, it brings a very high rate of growth in financial markets like crypto and stocks. In such an environment, a leading defi-native blockchain like Injective could easily become a top gainer.
Injective, which has already been experiencing high trading volumes lately, might gain more from this rally than others.
Further, with the rise in Real World Assets, Injective could be one of the top gainers besides Ethereum. McKinzie sees a $2 trillion global RWA market by 2030 from the current $8 billion. This amounts to a 2500% growth in less than six years.
Technical Charts on Injective
For the large rally that we at Droom Droom expect for Injective, let us pivot towards the weekly charts, which are capable of capturing multi-month trends.
The first thing that we can see on the charts is the Morningstar candle forming this week. Here, the Injective’s price went down till $15.28 but the support at $16.3 levels pulled it back above $16. A morning star candlestick is a very bullish one and is used to detect turnaround of a falling price curve.
However, should the Injective token fall below $15 this month, we expect it to stay that way for a while.
On the upside, INJ needs to move $28 before it enters a rally towards $52. Otherwise, there is a strong chance that it might get stuck between $28 and $17 for a while.
On the downside, if INJ breaks decisively below $15, it might crash down to $6.6.
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Injective Price Prediction
The following price predictions have been estimated by Droom Droom based on the assumption that Injective moves along the markets, and not against it, neither does it move with a higher beta as compared to Bitcoin’s price.
Note: Beta is the degree of correlation between two cryptocurrencies, usually a market dominator like Bitcoin and another crypto. When we refer to the beta in the previous paragraph, we specifically mean the beta of Injective.
Injective Price Predictions 2024
In 2024, we do not expect much gains except a revisit to the yearly high of $52. Based on the indications of a US Fed rate cut, INJ could easily move towards its 2024 highs by the end of the year.
However, if the Bears win, INJ could drop to $6.6 at the same time.
Injective Price Predictions 2025
By mid-2025, INJ might have fully realised all the gains and move towards a $100 price.
We expect this price because, after the US elections, the US Fed might be forced to give another few rate cuts till the US Fed’s base repo rates are below 2% from the current 5.25%.
Injective Price Predictions 2026
The year 2026 is expected to show a peak alt season. Further, INJ might also have gained decently from RWA sector taking its price to $150 to $170 by the end of the year.
We also expect slight corrections but they are mostly based on factors that have a low probability of occurrence, like a global peak for stock markets. Hence, we chose to ignore them for now.
Injective Price Predictions 2027
The year 2027 might be a year of price corrections due to the bullishness in the previous two years. We expect INJ to drop to $100 by the end of 2027.
Injective Price Predictions 2028
Since the year 2028 is yet another halving year like 2024, we expect INJ to make a new ATH in 2028. The crypto might even cross $200 by the first quarter of the year.
Here is an interesting read to understand the impact of Bitcoin halving better.
Injective Price Predictions 2029
2029 is expected to be a high growth and a super bullish year for INJ due to 2024’s halving effect and the arrival of an alt season.
We expect INJ to regain the $200 level by the end of 2029, even on a moderate RWA growth.
Injective Price Predictions 2030
The year 2030 might have several surprises for INJ. It is expected to be a peak year for altcoins. It may take the crypto market caps to new highs. Further, the RWA market might be a fully developed crypto sector, and users’ final transition from tradfi to defi might be seen.
Do you know that Ethereum, too, has been preparing for the RWA market for a long time?
In such a bullish environment, INJ might cross $400 or even $500 price levels.
Conclusion
Injective Finance could play a major role in the transition from traditional finance to decentralized finance, especially in the RWA sector. Further, being a defi-native project with its own blockchain, we at Droom Droom expect it to be a top gainer from the growth in RWA projects.
