INJ, the native token of the Injective Network, started the month of May with a volatile price action marked by a series of significant losses and gains. As INJ attempts to establish a stable price path, popular Market X Crypto analyst Tony has highlighted a pivotal support area for the altcoin in the coming weeks.
The analyst warns that INJ should not fall below the $19.30 level
in Share X On Friday, Crypto Tony shared a vital insight into the INJ market that could create a feeling of caution among many traders. The popular analyst stated that INJ should maintain the market price above the $19.30 price area, warning that a drop below this support level could pose a risk to investors.
While Crypto Tony did not mention the extent of this risk, it appears that the potential loss is likely enormous as his statements imply that bullish INJ traders may struggle to regain control of the market should the token price fall below the specified limit. Furthermore, the analyst stated that early investors in INJ including himself would be immune to this potential downside. However, he still plans to withdraw from the injection market if the coin loses the $19.30 support area.
Currently, N.J Deals About $24.70 reflecting a 4.68% gain in the last day after a period of extreme market volatility. The altcoin appears to be gaining momentum to the upside after a negative performance in recent weeks resulting in a 24.07% decline in the last 30 days.
What's next for the injection?
Regarding the upcoming rise of cryptocurrencies, many analysts have described INJ, which has risen more than 3,000% in 2023, as one of the potential altcoins favorable for investing in the coming weeks.
Interestingly, these sentiments have been reinforced in recent weeks by a series of positive developments on the Injective network. For example, injection registered 2.4 million transactions in one day, marking a new milestone in daily transactions for the Layer 1 network.
In particular, the Injective 3.0 network upgrade was recently approved which is expected to address INJ's inflationary issues by reducing the minimum and maximum token generation rate by 25% and 30% respectively over the next two years on a consolidated quarterly basis. Basis.
Through these deflationary measures, INJ is expected to experience increasing scarcity which may in turn push up the market capitalization of altcoins, thus contributing to a positive performance in the expected upside for cryptocurrencies. However, investors are reminded that all cryptocurrencies are subject to varying levels of market volatility and are advised to trade with all necessary caution.
INJ trading at $24.66 on the daily chart | Source: INJUSDT chart on Tradingview.com
Featured image from iStockphoto, chart from Tradingview
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