- INJ has generated $0 in profit so far, yet it has recorded an increase in both active and returning users in the market.
- Chart analysis reveals a strong possibility of a price surge, as several indicators align in its favor.
Injective [INJ] has maintained a bullish stance in the market, ending up as one of the top gainers in the past 24 hours with an 8.53% increase, at press time. This pushed its monthly gain to 24%.
Market analysis indicates strong investor interest in INJ. However, despite this interest, the chain is not currently generating profit. Could this affect INJ’s chances of sustaining its rally?
AMBCrypto investigates…
High users, low profit, high inflow
User activity on Injective has surged significantly in recent days.
According to an analysis of returning user data, more traders are coming back to trade on Injective.
The number of returning users has climbed from a low of 28,000 to 46,800—a nearly 20,000 user increase.
Source: Artemis
Monthly active users have also remained relatively stable since May 29, with 90,000 users actively using Injective to facilitate transactions.
This indicates healthy engagement with the chain, showing that users are interacting and utilizing INJ for real transactions.
Despite the growth in user activity, Injective’s on-chain profit has dropped significantly. At the time of writing, data from Artemis showed that on-chain profit has declined to $0.
Typically, when on-chain profit remains at $0, it signals high spending by the team, which can shake investor confidence.
Source: Artemis
Surprisingly, investors are responding differently. This group has started adding liquidity to Injective, as reflected in the rising Total Value Locked (TVL).
TVL measures a chain’s valuation based on the amount locked in its protocols. A growing TVL suggests increasing liquidity inflow, as investors deposit more funds.
Currently, INJ’s TVL has risen to $28.59 million, a 16.75% increase in the past 24 hours. This indicates sustained investor interest despite the lack of profit.
What’s next for INJ?
AMBCrypto analyzed market conditions to determine whether INJ is likely to rally or fall, and the outlook leans toward a rally.
INJ has broken through a major resistance line in the bullish pattern on the chart, showing a clear path toward a potential 20% gain.
Source: TradingView
That’s not all, technical indicators are also supporting this rally. The Bull-Bear Indicator and Parabolic Stop and Reverse (SAR) both point in favor of continued upward momentum.
The Parabolic SAR, which signals a rally when dots appear below the price, currently shows dots forming beneath INJ’s price, suggesting a bullish trend.
Similarly, the Bull-Bear Power indicator, which uses histogram bars to reflect whether bulls or bears dominate, echoes the same sentiment.
Source: TradingView
At the time of writing, a green histogram appeared for the sixth consecutive day, with today’s bar being the largest of all six.
If these bullish indicators persist, INJ’s rally potential remains strong.
However, if investor sentiment shifts, especially regarding the protocol’s lack of profit generation, then INJ could face a significant pullback.
