INJ Sees Surges on Kraken, But Low Volume Raises Eyebrows

• In the early trading hours of Friday, INJ rallied to an all-time high of $49 on Kraken.
• While the growth was notable, the volumes of the trade that led to it were low.
• On the daily market, the token continues to see increased demand.

The Injective Protocol (INJ) token witnessed a surprising spike on Friday, reaching $49 on the Kraken exchange to mark its all-time high. 

However, the price surge lacked significant backing, as the trading volume remained relatively low, crypto research analyst Riyad Carey noted in a post on X (formerly Twitter).

According to Carey, the two largest trades responsible for the jump were reportedly worth only $70,000 and $40,000, respectively. 

This suggests the surge might have been due to specific market manipulation or whale activity rather than broad market optimism.

The alt’s price has since been corrected to trade at $39 at press time. 

INJ maintains momentum 

INJ has seen significant price growth in the last month. At its current price, the altcoin’s value has climbed by 160% in the last 30 days, according to data from CoinMarketCap.

The price growth has been due to a notable rally in demand for the altcoin. An assessment of the token’s 50 and 200-day simple moving averages (SMA) confirmed the uptick in accumulation. At press time, INJ’s 50-day SMA rested above its 200-day SMA.

This is generally considered a sign of strength in the market. It is referred to as the golden cross, which occurs when a short-term SMA breaks above a long-term SMA. 

Also confirming the upswing in INJ accumulation in the past few weeks, its momentum indicators were spotted at overbought highs at the time of writing. While the token’s Relative Strength Index (RSI) was 77.30, its Money Flow Index (MFI) was 76.42.

Although these values hint at the possibility of a price correction, they showed that INJ accumulation exceeds distribution in the spot market. 

Likewise, the token’s Chaikin Money Flow (CMF) was spotted above the zero line. A CMF value above this line is a sign of strength in the market, as it shows the influx of new capital. At press time, INJ’s CMF was 0.10.

With the bulls in full control of the INJ market, the token’s Average Directional Index (ADX) showed that the bears would find it challenging to regain market control in the short term.

This indicator measures the strength of a trend. An ADX value above 50 shows that the market trend is strong and an asset’s price is moving aggressively in one direction. 

At press time, INJ’s ADX was 53. This, coupled with its price growth, showed the extent of the bullish sentiment present in the market.