Chinese giant company Tencent said yesterday that it has partnered with popular altcoin Injective (INJ), a decentralized derivatives exchange protocol.
INJ, which experienced a rise in price after this partnership news, has experienced a great rise since the beginning of 2023.
Evaluating this rise of INJ, Santiment said that INJ has increased by more than 500% since the beginning of 2023.
Stating that FOMO is real for INJ, Santiment stated that INJ may have the momentum necessary to sustain this rise.
"INJ has gone from $1.2 to $9.2 since the start of 2023. That's an impressive rise."
Stating that one of the biggest factors in the increase in INJ price is the strong and high trading volume, Santiment said that the high volume is a proof of the increasing interest towards INJ.
Stating that INJ's social volume has also reached its highest level in the last 6 months, Santiment said, "This type of social volume increase usually occurs before local summits."
Pointing out that INJ's network growth showed weakness in addition to these volume increases, Santiment said that INJ experienced "Rising price, decreasing Network Growth".
“It seems that fewer people are joining the INJ community. This is generally not a good sign as there is a rising price in the face of declining network growth and not many new entrants entering at such price levels.”
Finally, looking at the MVRV rate, Santiment noted that INJ has shown that the 30-day MVRV rate is at its highest level in 6 months.
“Measuring short-term profit/loss of owners, MVRV is giving a bearish signal for INJ, as INJ's 30-day MVRV rate shows we are at 6-month highs.
Based on this MVRV ratio, we are historically very high in the Danger Zone, where INJ has seen its price drop shortly after forming a local top."
*Not investment advice.