Injective price rose slightly on Tuesday, despite important news from the US, where a New York Stock Exchange (NYSE) listed company will start accumulating the token. INJ price rose to $13.62, a few points above last week’s low of $12.11.
Pineapple Financial to Start INJ Accumulation
The Injective price rose even as Pineapple Financial, a company valued at $9 million, completed its $100 million capital raise, which will be used to accumulate INJ tokens as it seeks to replicate MicroStrategy’s success in Bitcoin buying.
In a statement, Injective noted that the company will buy the tokens in the open market in the coming weeks. This purchase will make it one of the largest INJ holders, as the $100 million represents approximately 7.6% of its market capitalization.
Pineapple Financial has likely selected Injective because, unlike other popular altcoins, it does not have token unlocks as all its coins are currently in circulation. Also, Injective is actively burning its tokens using the onchain fees that it generates on its platform. This approach has already burned 6.7 million tokens so far.
Most importantly, the new $100 million capital raise is not the last one, as Pineapple plans to raise more money to buy Injective. By doing this, the company will benefit when the INJ price rallies.
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It will also make money by staking the tokens. INJ has a staking yield of about 12.85%, meaning that its $100 million investment will generate about $1.2 million in staking fees a year if the yield remains intact.
Pineapple’s investment comes at a time when concerns about Injective’s valuation continue. While INJ has a market capitalization of over $1.3 billion, its ecosystem is relatively small. Data shows that it has a total value locked of just $87 million and just 20 dApps with at least $2,500 in assets.
Injective, which was created with a focus on finance, has just $20 million in stablecoin supply and handled just $800k in DeX volume in the last 24 hours.
Injective Price Technical Analysis
The daily timeframe chart shows that the INJ price rose slightly after the new Pineapple Financial fundraising and the impending accumulation.
INJ price is oscillating at the 50-day and 100-day Exponential Moving Averages (EMA). Most importantly, it has formed a rising wedge pattern, which is comprised of two ascending and converging trendlines.
Therefore, there is a likelihood that the INJ price will have a bearish breakout in the coming days. If this happens, it will drop and retest the important support level at $9, the lowest swing on June 22.
The alternative scenario is where the Injective price rebounds and hits the upper side of the channel at $16.46.
