Injective (INJ) has emerged as the top performer among the top 100 cryptocurrencies by market cap, surging nearly 30% in the last 24 hours to trade around $9.30 on Friday. The rally follows a recovery from the 50-day exponential moving average (EMA) near $6.59 last week, with the token now breaking above the closely watched $8.21 resistance level.
The price surge coincides with increased attention on Injective's tokenization strategy after CEO Eric Chen met with senior US officials, including representatives from the White House, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). The discussions, held Wednesday, focused on advancing tokenization and onchain finance within US regulatory frameworks.
Injective highlighted several developments alongside its policy engagement, including SEC-registered transfer agent status for tokenized securities, CFTC-regulated INJ futures, and its Injective mint initiative for real-world assets. The team also announced earlier this week that Injective will be coming to Wall Street soon.
Santiment data placed INJ's social dominance at 1.1% on Friday, indicating a rise in the token's share of tracked cryptocurrency discussions. That attention accompanied the policy discussions, although it does not establish that the meetings caused the price recovery.
Onchain metrics show declining exchange balances
Santiment's onchain figures showed a decline in the amount of INJ held on exchanges, alongside an increase in holdings among leading non-exchange wallets. Exchange supply fell from approximately 1.26 million INJ on August 12 to 872,500 INJ on Thursday. Over the same period, the top non-exchange wallets increased their holdings from 94.99 million to 95.46 million tokens.
The shift suggests less INJ is immediately available on tracked trading platforms. Withdrawals can be consistent with longer-term holding, although they do not confirm investors' intentions or rule out future selling.
Meanwhile, the percentage of circulating supply in profit climbed to 77.01%, compared with 41.16% at the earlier reference point. That increase reflects improved holders' positions as prices recovered. It may support confidence, but it also leaves more investors able to realize gains.
Technical outlook: $10.09 in focus
Injective's daily chart shows a bullish bias, with the price above both its 50-day EMA at $6.94 and its 200-day EMA at $5.76. The Moving Average Convergence Divergence (MACD) indicator remains in positive territory, accompanied by a modestly positive histogram. The Relative Strength Index (RSI) stands near 66, suggesting upward momentum without reaching the conventional overbought threshold of 70.
The move above $8.21 strengthens the recovery setup. Holding that breakout would support a potential advance toward $10.09, the October 13 high. If buyers overcome that barrier, the October 10 high at $12.44 becomes the next upside reference. Both targets remain conditional on sustained demand and follow-through buying.
The $8.21 breakout level provides an initial reference for whether buyers can maintain control during a pullback. Below it, the 50-day EMA near $6.94 offers stronger technical support. The 200-day EMA around $5.76 provides a deeper reference for the broader trend.
For now, positive momentum and lower exchange balances support Injective's recovery. The next test is whether INJ can hold above its breakout and build enough demand to challenge $10.09.
This article is for informational purposes only and does not constitute financial advice.
