Injective Price Prediction: INJ 3.0 Upgrade Will Reduce Token Supply

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The continuous rise of Injective (INJ) and the upcoming INJ 3.0 upgrade are attracting investor attention, which may have a positive impact on its future price. Here is a detailed analysis of INJ's recent performance and a forecast of its future trend:

INJ Price Performance Analysis

Continuous Rise: As of Tuesday, the INJ price has risen for seven consecutive days, breaking through $26, with a gain of over 25% in the previous week. This strong upward trend makes it one of the hot topics in the crypto market.

Breakthrough of Key Resistance Level: INJ broke through the daily resistance level of $23.46 on Sunday and closed above the 50-day Exponential Moving Average (EMA) of $24.41, indicating short-term bullish momentum. As the price continues to rise, INJ may test the next resistance level of $31.12, which represents an 18% upward potential from the current price.

Impact of INJ 3.0 Upgrade

Supply Tightening: The INJ 3.0 upgrade aims to reduce the supply of INJ, continuing until the first quarter of 2026, making it a deflationary digital asset. With the reduction in supply, the increased demand in the market could further drive up the value of INJ tokens.

Long-term Impact: This supply reduction mechanism could have a lasting positive effect on INJ prices, especially in the context of increasing demand. This move will help curb inflation and enhance INJ's appeal as a store of value.

On-chain Indicators Support Bullish Outlook

Open Interest (OI) Growth: According to Coinglass data, open interest in INJ futures has risen from $116.42 million on January 1 to $197.74 million, reaching the highest level since December 16. This indicates new capital flowing into the market, further boosting bullish sentiment.

Capital Inflow: The increase in open interest represents new buying and capital inflow, showing the market's optimistic expectations for INJ's future. With continuous capital injection, INJ's price may continue to rise.

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