Injective Protocol price went parabolic as investors cheered the latest fundraising by the developers. INJ, its native token, rose to a high of $2.50, which was the highest level since June 10th. This means that the coin has rallied by more than 100% from its lowest level this year.
Injective raises $30 million
Injective Protocol is a relatively small and fast-growing smart contract platform developed for the finance industry. It was built specifically to help developers build applications in the Decentralized Finance (DeFi) industry.
Injective was created on top of the Cosmos blockchain and its applications are compatible with Ethereum. It is highly secure, has lightning-fast transaction speeds, and has extremely low costs.
INJ price jumped sharply after the developers scooped $40 million from a group of investors led by Jump Crypto and BH Digital. BH is the crypto arm of Alan Howard, one of the best-known hedge fund managers.
The funding came a year after the developers raised $10 million from Mark Cuban, Pantera Capital, and BlockTower.
In a statement, the developers said that they will use the new capital to spur further development aimed at creating the best platform for finance applications. The platform has already reached over 92 million transactions while dApps built on Injective have generated over $7 billion of volume. The statement said:
“Injective offers these institutions an out-of-the-box solution that can be leveraged to build any finance app. We look forward to building together with the Injective community and are optimistic about the ecosystem’s future growth.
Therefore, Injective Protocol price rose as investors cheered the fundraising. It is a sign of validation about the future of the network.
At the same time, the rally coincided with the sharp rebound of cryptocurrencies and American stocks following the weak inflation data.
Injective Protocol price prediction
The four-hour chart shows that the INJ price has been in a strong bullish trend in the past few weeks. It then went parabolic after announcing the latest fundraising. As it rose, it managed to move above the important resistance level at $1.5495, which was the highest level on June 26 and July 11. The MACD and the Relative Strength Index (RSI) continued rising.
Therefore, I believe that this parabolic move will be short-lived, which will see the price retest the support at $1.5495.
The post Here’s why the Injective Protocol (INJ) price went parabolic appeared first on CoinJournal.
