The crypto space continues to consolidate within narrow regions as the Bitcoin price is repeating its structure and remains stuck just below $30,000, as it did previously at $27,000 and $28,000. Therefore, if it replicates the previous pattern, then the price could eventually continue to maintain a consolidated trade for some more time before the next catalyst pushes the price beyond the crucial resistance at $32,000.
In the meantime, altcoins appear to have gained significant strength, and among all, Injective Protocol has managed to gain immense attention. The altcoin has surged by more than 500% since the beginning of 2023 and seems to have gained extreme bullish momentum, which is much needed to maintain a healthy upswing in the coming days.
As per the data from Santiment, the INJ price spike was fueled by numerous reasons, but a healthy jump in volume could be the major one.
The volume had largely maintained its levels below $100 million, but it has intensified since the beginning of the year. In the past few days, the volume soared high to reach close to $300 million, which spiked the price from around $4.3 to as high as $9.4. Besides, the social volume of the token also registered the highest volume in the past 6 months.
Social volume is nothing but the social data of the token, which includes the search volume of the token. It indicates the rising demand for the token as the market participants tend to shift their focus over the asset. The volume has increased significantly since the beginning of the year and witnessed a massive spike in the past few days, indicating the soaring interest of traders in the asset.
Besides, the platform recorded a significant drop in new addresses, indicating the number of returning traders has soared.
The network growth is much like the daily active address, which records the total number of addresses interacting in a day. It records the addresses that have performed any trade, but only for the first time. In short, it records the number of new addresses formed and transactions made in a day. It indicates user adoption and helps determine whether the platform is gaining traction or not. The levels dropped but the price continued to rise, indicating fewer people are coming in to sustain the price action.
While the traders and the market participants continue to accumulate, whales remain busy in distributing their holdings.
Whale accumulation and distribution are considered two of the major indicators of the impending rally. The whales usually accumulate during the bear cycle or at the bottom of the cycle and distribute at the peak. This may hinder the progress of the rally in the short term and create notable selling pressure, but if the retail traders and the bulls maintain their strength, the price may continue rising.
Collectively, the Injective Protocol (INJ) price has witnessed a massive spike in the first quarter of 2023, and the above fractals indicate a fresh bearish wave may be triggered any time from now.