After posting staggering 400% gains in the year 2023 so far, it remains to see whether or not Injective Protocol (INJ) will experience price correction in the near future. To understand the possible future of the INJ price, let us take a look at the various indicators in this regard.

Firstly, Market-Value-to-Realized-Value (MVRV) analysis compiled by Santiment predicts that INJ could go through a price retracement. Currently, the holders of INJ that have purchased the coin in the last 30 days are sitting on profits at around 34%. Historical MVRV data shows that investors would most likely sell INJ when the price touches the break-even point of around 42%. If INJ reaches the $6.90 zone, the coin will most likely experience a price correction.

Social volume - the total mentions of the Injective Protocol project across crypto social media platforms - has also seen an increase in the past month. Injective Protocol’s social volume between March 11 and April 11 grew exponentially from 18 to 208, setting multiple highs in the beginning of April. This could be attributed to the overwhelming performance of the coin this year and the airdrops that it has been offering for its native DeFi projects. In the past events, such drastic increases in social volumes have usually been followed by price adjustments. As such, investors should expect a price drop in the near future.

With investors controlling more than 100 million INJ coins in wallet addresses, a break-even point may trigger a sale pressure. INJ's break-even point is around $6.5 which, once crossed, will result in the investors booking their profits and taking out the coins from the market. This may in turn put pressure on the INJ price and lead to retracement.

On the other hand, if INJ manages to overcome the $6.58 barrier successfully, then it is very likely that the INJ price may reach a two-year high of $9.40. This will bring positive sentiment among the INJ holders and add to the bullish sentiment of the coin.

Overall, with the present indicators all explicitly showing a price correction of the INJ coin, it remains to be seen whether the bulls in the market are strong enough to breach the current barrier, or the coin price will hit a retracement. Nevertheless, any investment in cryptocurrencies, such as INJ, should be done with caution.



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