WARNING FOR ALL INVESTORS: INJ token Is primed for a harsh correction. Here are the reasons why that's the case:
-Futures funding rates have been positive for quite some time, indicating that spot traders are hedging for tail risk, meaning that their main positioning is either short-selling the underlying asset (INJ token) or that there is a lot of selling taking place and spot traders want to hedge their opportunity risk by opening small long positions in the futures market, just in case what they consider the lower probability event happens (which is INJ keeps appreciating in value);
-We are in a deflationary macroeconomic environment, which means that there is a shortage of liquidity in overall financial markets (including crypto) that keeps getting worse (except for banks, and they can't by law invest in crypto, given that banks capital requirements allows them to invest 90% of their capital into common stock shares and other securities, but not cryptocurrencies) because companies that invest in technology and crypto (like VC , Private Equity and tech companies such as Micro strategy/Tesla/fintech companies and Crypto brokers) can't get cheap financing/refinancing since interest rates on debt refinancing operations rose considerably, which means that they can't invest the same way they used to and they're way more likely to take profit by closing their longs, starting with the more volatile ones (crypto). For reference and to see what I'm talking about, go check where the NASDAQ 100 index was when Bitcoin reached a price of 64K during April 2021 (spoiler alert: way lower than where it is today). It means that the institutions that were investing in BitcoinCrypto during that time are not doing so today, and that a few opportunistic traders and market makers are taking advantage of the average investor's optimism by using momentum to extract profits.
-Profit margins compression in the invested companies balance sheet is another factor that makes them way more likely to realize their profits;
-Momentum has considerably slowed, which means that opportunistic traders are likely to sell and take the opposite position while market makers widen the bid-ask spread to make more profits off the volatility, exacerbating the asymmetry towards the selling activity in the buy/sell ratio.
-The liquidity picture in every major economy in the world is getting uglier by the day.