Key Takeaways:
- Injective partnered with Tencent to support its developers.
- However, the INJ token failed to respond to the bullish cue.
Google News
NEW DELHI (CoinChapter.com) — Finance-focused blockchain platform Injective has partnered with Tencent Cloud, the cloud business arm of China’s biggest firm by market cap, Tencent.
In an announcement, Injective stated that the partnership would help its ecosystem grow. The partnership’s first beneficiaries will be the Injective Global Virtual Hackathon developers. Winners of the hackathon would get access to Tencent’s cloud infrastructure.
Furthermore, Tencent Cloud’s partnership with Injective underscores the rising interest in DeFi and the Web 3 ecosystem.
“By collaborating with Tencent Cloud, Injective builders are gaining access to a range of resources and support that will enable them to accelerate their development. With Tencent Cloud’s support, Injective is well-positioned to become a leader in Web3 while continuing to drive true innovation“
said Injective Labs co-founder and CEO Eric Chen
Moreover, access to Tencent Cloud’s infrastructure might attract more developers to Injective’s hackathon event.
INJ Token Price Fails To React To Bullish Cue
Meanwhile, the Injective Protocol price dropped more than 14% from April 17’s high of $9.98 to a daily low of $8.5 on April 18. The pullback occurred after the INJ token price flipped multi-week ascending trendline resistance on April 14 after the Injective Protocol token rallied over 34% daily.
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However, the rally also resulted in INJ’s relative strength index becoming overbought, with a value of 76.66 on the daily charts. Overbought RSI levels usually precede an impending trend reversal in an asset’s prices. Hence, traders consider it a bearish cue and a sell signal.
Interestingly, INJ Price reacted in a textbook manner to overbought RSI levels. Moreover, if the downtrend continues, the INJ token price might drop to support near $7.97.
Additionally, breaching the immediate support level might result in the INJ prices dropping below the recently flipped trendline support. As a result, the Injective Protocol token could drop to test the 20-day EMA (red wave) support near $6.7 before recovering.
Conversely, if the INJ token starts moving upward, it would face resistance near $10.61. Therefore, breaking and consolidating above the immediate resistance might help the Injective Protocol token to rise to $13.2 before correcting.
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