INJ Technical Analysis Feb 1

INJ’s 24-hour trading volume reached 67.68 million dollars, while volume participation in the downtrend remains limited, and combined with oversold RSI, it gives hidden accumulation signals. Market participants show weakness in volume despite selling pressure, signaling potential base formation.

Volume Profile and Market Participation

INJ’s current price is trading around 3.52 dollars, with 24-hour trading volume recorded at 67.68 million dollars. This volume is positioned at a medium level compared to recent weekly averages, but the lack of volume increase despite a 3% loss in the downtrend is noteworthy. Volume profile analysis detects a total of 6 strong levels across 1D, 3D, and 1W timeframes: 1 support/1 resistance on 1D, 1 support on 3D, and 1 support/3 resistance on 1W. This distribution indicates that supports are more dominant in the short term.

From a market participation perspective, volume during the downtrend generally stays below levels seen in up moves. While a healthy downtrend expects volume increase, the limited volume on down moves in INJ implies weakening seller strength. In the volume profile, Value Area High (VAH) is around 3.91, and Value Area Low (VAL) is near 3.17. As price approaches VAL, volume shrinkage exhibits a pattern supporting base testing. With low participation rates, institutional monitoring tendency prevails over retail panic selling. This is confirmed by narrowing bars in the volume histogram – no spike in the last 24 hours, just stability.

Accumulation or Distribution?

Accumulation Signals

Accumulation phase signals are particularly evident with volume divergence at oversold RSI levels like 26.92. As price erodes below EMA20 (4.43), volume decreases on down moves, forming the ‘drying up volume’ pattern. This shows strong hands (institutional) waiting for buying opportunities instead of selling. MTF volume levels supporting 1D and 3D supports (3.17) align with the Wyckoff accumulation schema. Recent weeks’ low-volume consolidation has shifted POC (Point of Control) around 3.50, holding the price. If volume increases above VAL, accumulation confirmation will follow.

Educational note: In accumulation, volume weakens rather than confirming price declines; INJ is showing exactly this scenario, preparing the ground for potential reversal.

Distribution Risks

Distribution warnings depend on potential volume spikes with Supertrend bearish (resistance 4.60) and negative MACD histogram. If there’s a volume explosion testing 3.91 resistance, the distribution cap could break. 3 resistance levels on 1W signal sellers preparing on higher timeframes. Current 67M volume could lead to bearish target 1.63 if volume increases on down moves. However, no volume confirmation yet, risk remains low.

Price-Volume Harmony

Price action shows a 3% decline in the downtrend, with obvious lack of volume confirmation. High volume on down candles is essential for a healthy bear move, but INJ dominates with volume divergence: volume shrinks as price makes new lows. This reflects seller exhaustion per the ‘volume does not lie’ principle. Combined with oversold RSI, price-volume divergence creates bullish divergence. There’s price pressure below EMAs, but downside without volume spikes increases fakeout risk. Key levels: If support 3.17 (74/100 score) holds with volume, harmony turns positive; if resistance 3.91 (65/100) breaks, expect volume spike.

Educational perspective: Price alone can be misleading, volume confirmation is essential. INJ’s lack of volume on downside signals trend reversal.

Big Player Activity

Institutional activity patterns are visible through long-tailed wicks and POC stabilization in the volume profile. Whale footprints are limited in 67M volume, but clustering exists at MTF supports – high volume at 1W support. Institutional accumulation is usually low-profile; INJ’s volume at key levels (3.17) fits this profile. For distribution, volume cliffs are expected at resistances (4.60), not yet present. INJ Spot Analysis and INJ Futures Analysis data also show spot-futures volume parity, low manipulation.

Never definitive: Big players stay hidden, but patterns should be monitored.

Bitcoin Correlation

BTC at 77,650 level with 4.24% decline in downtrend, Supertrend bearish. Altcoins like INJ are highly correlated to BTC (%0.85+); if BTC supports 75,720-64,655 break, INJ tests 3.17. If BTC recovers above resistance 78,198, INJ eyes bullish target 5.49. Dominance increase crushes alts; current BTC caution suppresses INJ volume. Watch: Below BTC 75K adds selling for INJ, above 78K brings relief.

Volume-Based Outlook

Volume-based outlook: Short-term bearish bias but accumulation favored by volume divergence. Long if 3.17 support holds with volume, short on spike above 67M. Bull target 5.49 low score (30), bear 1.63 (22). Volume story: Participation weak, accumulation potential high – watch price but let volume lead. Overall, oversold + low volume down = reversal setup.