Injective Price Forecast: INJ extends rally as CEO meets US policymakers to push advanced tokenization

• Injective edges higher on Friday, extending the 11% rebound from the previous day.
• Injective CEO Eric Chen met with top US policymakers on Wednesday to advance tokenization and on-chain finance within US regulations.
• On-chain data shows INJ supply shifting away from exchanges amid a rising percentage of supply in profit, suggesting strong demand.

Injective (INJ) is inching closer to $9, extending a steady rebound from the 50-day Exponential Moving Average (EMA), which was at $6.59 last week. Injective’s CEO Eric Chen met with senior US officials on Wednesday to advance tokenization and on-chain finance within US regulatory frameworks. On-chain data shows an increase in supply moving out of exchanges, alongside a rising percentage of supply in profit, indicating reduced selling pressure.

The technical outlook for INJ indicates an upside bias, with the price breaking above the $8.21 key resistance and renewed bullish momentum.

Growing confidence in Injective’s tokenization push drains exchange liquidity

Injective is gaining social interest and investors' confidence. Santiment data shows the social dominance of the INJ token is at 1.1% on Friday, suggesting nearly 1% of all crypto-related discussions are about Injective. This aligns with Eric Chen’s White House meeting.

Chen met with top officials from the White House, the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) on Wednesday. Injective aims to push advanced tokenization and on-chain finance in direct collaboration with the US government and major regulatory bodies. A few of Injective's recent achievements in tokenization include securing SEC-registered transfer agent status for tokenized securities, CFTC-regulated futures for the INJ token, and the Injective mint for Real-World Assets (RWAs), following the US SEC’s innovation exemption.

On the other hand, Santiment data also indicates that supply is moving out of exchanges, implying reduced selling pressure. The top non-exchange wallets held 95.46 million INJ tokens on Thursday, up from 94.99 million on August 12. At the same time, the supply on exchanges dropped to 872,500 INJ from 1.26 million INJ, suggesting investors are pulling their holdings off exchanges to hold long term. Meanwhile, 77.01% of circulating supply is now in profit, up from 41.16% in the same period. 

Technical outlook: Injective rally eyes $10

Injective trades at $8.71 at press time on Friday, extending its advance well above the 50-day Exponential Moving Average (EMA) at $6.94 and the 200-day EMA at $5.76, which together reinforce a constructive near-term bullish bias.

The Moving Average Convergence Divergence (MACD) remains in positive territory with a modestly positive histogram, while the Relative Strength Index (RSI) at around 62 suggests healthy upside momentum without being overbought.

From a technical perspective, INJ confirms a bullish breakout of the $8.21 resistance set by the October 11 low, opening the path toward the October 13 high at $10.09. Beyond that, the October 10 high at $12.44 could serve as the next overhead target.

On the downside, immediate support is at the current price area around the 50-day EMA near $6.94 and deeper structural support at the 200-day EMA around $5.76.

(The technical analysis of this story was written with the help of an AI tool. Know more.)