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Injective price forms ‘lower highs across the board,’ says analyst

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Injective, the popular Cosmos-based blockchain for decentralized finance, continued retreating amid concerns about its ecosystem.

Injective (INJ) token retreated to $16.90 on Sep. 3, its lowest point since Aug. 8. It has dropped by over 67% from its highest point this year, erasing most of the gains it made in 2023. Its valuation has dropped from over $4.8 billion in March to $1.65 billion.

Ecosystem challenges remain

Injective’s price action has coincided with the sell-off of most altcoins as the crypto fear and greed index remained at the neutral point of 47. 

This decline has occurred despite a significant increase in the network’s on-chain transactions. According to its website, Injective has handled over 918 million transactions since its launch.

However, concerns persist about its ecosystem in relation to its valuation. Data from DeFi Llama shows that its DEX protocols handled $43.7 million in the last seven days, making it the 23rd largest chain in the industry, lagging behind platforms like Osmosis, Mantle, and Blast.

Injective’s DEX volume has been in steady decline after peaking at $611 million in March this year, indicating that its DEX ecosystem is not experiencing growth.

Injective DEX volume
Injective DEX volume | Source: DeFi Llama

The total value locked in the Injective ecosystem has retreated to $46.5 million, making it the 51st largest chain. This TVL has also been decreasing after peaking at $72 million earlier this year. Additionally, the volume of stablecoins in its ecosystem has dropped to $22.6 million.

Injective’s performance in the DeFi industry is notable because its goal is to become the blockchain for the financial services industry.

Injective token has also retreated as its staking inflows have declined. Data shows that the network has experienced outflows in the past two days, while the staking yield has retreated to 10.4% from last month’s high of 18.7%.

Trader cautions on Injective

Injective price
Injective price chart | Source: TradingView

INJ token has pulled back after reaching a high of $52.96 in March. Recently, it has formed a series of lower highs and lower lows, indicating that bears are in control. In a note, Altcoin Sherpa, a trader with over 222,000 X followers, warned that the token remains at risk of further downside.

Injective has also remained below the 50-day moving average, while the accumulation/distribution indicator has continued to decline, pointing to increased distribution.

Its volume has also continued to fall, suggesting more downside. This sell-off will be confirmed if it drops below the descending trendline that connects the lowest swings since April 12.





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BONK hits new all-time high following Upbit listing

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BONK has emerged as the top gainer among the leading 100 assets following a major announcement from the South Korean crypto exchange Upbit.

Bonk (BONK), the first Solana-based meme coin, surged 18% on Wednesday to hit a new all-time high of $0.000058. Its market cap soared to over $4.1 billion when writing, flipping Dogwifhat’s (WIF) $3.2 billion market cap to reclaim its position as the largest meme coin on the Solana blockchain.

Why is BONK going up?

The altcoin’s price uptick coincided with a jump in the meme coin’s futures open interest. According to data from CoinGlass, OI for BONK’s futures market rose to an all-time high of $53.5 million, more than 7 times its monthly low of $6.3 million, suggesting a growing demand from investors.

Bonk’s recent rally followed its listing on South Korea’s largest crypto exchange, Upbit. BONK’s daily trading volume shot up 95% amid the listing, hovering over $3.5 billion when writing.

Another key factor driving the altcoin’s gains is Bonk DAO’s announcement of a massive 1 trillion token burn scheduled for Christmas Day, which is set to reduce the total number of tokens in circulation, thereby increasing scarcity.

Whales have also been interested in the meme coin lately. According to data shared by Lookonchain, a whale with a history of profitable meme coin investments has spent 3.4 million USDC to buy 65.4 billion BONK tokens. Last week, another whale was seen picking up 29.32 billion BONK at $0.0000387.

Whale buying typically boosts retail investor confidence in an asset, potentially driving FOMO (fear of missing out) among those seeking quick gains.

Bullish momentum to continue

BONK’s rally hasn’t lost strength despite surging over 72% in the past week alone. On the 1-day BONK/USDT price chart, BONK’s EMA lines show a strong bullish trend, with the short-term 50-day EMA above the long-term 200-day EMA and the price staying above both lines. 

BONK hits new all-time high following Upbit listing - 1
BONK price, 50-day EMA and 200-day EMA — Nov. 20 | Source: crypto.news

Based on this setup, the bullish trend is expected to continue in the short term as the buyers remain in control. However, the Relative Strength Index showed a reading of 82, which confirms the bullish momentum but puts the meme coin at overbought levels.

BONK hits new all-time high following Upbit listing - 2
BONK RSI chart — Nov. 20 | Source: crypto.news

Despite the overbought status, an analyst suggests that BONK is undergoing a ‘Blue Sky breakout,’ which could sustain its upward trajectory in the coming days. 

This speculation is supported by strong catalysts driving the uptrend and the current hype around meme coins. Separately, Bitcoin’s recent rally to new highs has amplified market-wide sentiment, further boosting interest in the meme coin sector, which gained 2.3% over the past day.



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Ethena Sees $1B Inflows as Crypto Rally Brings Back Double-Digit Yields

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The protocol’s rejuvenation is driven by elevated perpetual funding rates, with more catalysts ahead for growth.



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Uncertainty Looms For Crypto As SEC And CFTC Leadership Transitions Unfold Under Trump

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Este artículo también está disponible en español.

As Donald Trump prepares to take office for another term, speculation is intensifying regarding the future of crypto regulation, particularly concerning the leadership of the US Securities and Exchange Commission (SEC). 

Recent social media posts by FOX journalist Eleanor Terret suggest that SEC Chairman Gary Gensler may be on the verge of resigning, possibly before Trump’s inauguration in January 2025.

Pro-Crypto Candidates In The Running To Succeed Gensler

According to sources close to the situation, Terret says Gensler’s resignation, which would leave his term, set to expire in 2026, uncompleted, is expected to be announced after Thanksgiving. 

However, while Gensler has faced heavy criticism during his tenure for his strict regulatory approach to the crypto industry, the identity of his successor remains uncertain.

Former Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo has dismissed rumors regarding his nomination, while several other candidates are being considered. 

Among the names in the mix are Dan Gallagher, Chief Legal Officer at crypto exchange Robinhood; Bob Stebbins, a partner at Willkie Farr; former SEC Commissioner Paul Atkins; and Paul Hastings lawyer Brad Bondi. 

Terret suggests that Gallagher, while initially reluctant to leave Robinhood, may reconsider as the dynamics of the administration’s appointments shift. 

Stebbins, who has close ties to Jay Clayton, a former SEC chairman, is rumored to be a favored candidate, though he lacks a crypto background. Still, sources suggest he would follow the Trump administration’s lead on digital assets.

Atkins and Bondi are both known for their pro-crypto stance, advocating for a “lighter regulatory touch.” Atkins serves on the board of the Digital Chamber of Commerce and co-chairs its Token Alliance, focusing on token issuance growth. Bondi has been involved in advising decentralized finance (DeFi) projects, indicating a commitment to fostering innovation in the crypto space.

Trump Plans Resource Allocation For CFTC

Other names circulating in crypto circles include former CFTC Chair Heath Tarbert, former Acting Comptroller of the Currency Brian Brooks, and former SEC Investment Management Director Norm Champ. Champ recently expressed his willingness to serve if asked, signaling his interest in a potential role in the upcoming administration.

In addition, pro-crypto SEC Commissioner Mark Uyeda is reportedly open to taking the chairmanship, possibly as acting chair, while fellow Commissioner Hester Peirce, dubbed the “crypto mom” of the agency, has privately indicated her disinterest in the role.

With these leadership changes on the horizon, Terret anticipates that the new SEC chair will be pro-crypto, while also being equipped to handle the broader responsibilities of the agency, which include oversight of public companies, the stock market, the bond market, private funds, and the consolidated audit trail (CAT).

Compounding the speculation is the expectation that the Trump administration may also increase the CFTC’s role in cryptocurrency regulation. Terret asserts that the administration is considering allocating more resources to the CFTC, although the specifics of how this will be implemented remain unclear and would likely require additional funding.

Crypto
The daily chart shows the total crypto market cap valuation at $2.9 trillion. Source: TOTAL on TradingView.com

Featured image from DALL-E, chart from TradingView.com



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