Deep Dive
1. Technical Momentum (Bullish Impact)
Overview:
INIT’s MACD histogram turned positive (+0.00058459) for the first time since mid-December 2025, signaling waning selling pressure. The price ($0.095) sits above its 7-day SMA ($0.0908) and EMA ($0.0925), with RSI 14 at 50.14 – neither overbought nor oversold.
What this means:
The bullish divergence between price and indicators suggests traders are accumulating at perceived support levels. With no major resistance until $0.1005 (23.6% Fibonacci level), technical traders likely amplified the upward move.
What to look out for:
A close above $0.096 (January 17 high) could trigger stop-loss orders and accelerate gains.
2. Exchange Liquidity Shifts (Mixed Impact)
Overview:
Upbit and Bithumb resumed INIT deposits/withdrawals on December 22 after a 72-hour suspension for network upgrades. While the halt initially caused a 10% price drop, trading volume surged 142% to $9.95M in the past 24h.
What this means:
Korean exchanges account for 35-50% of INIT’s historical volume (Kaiko). The liquidity return likely enabled renewed buying from institutional traders who couldn’t exit positions during the freeze.
3. Reactor Upgrade Sentiment Shift (Neutral-Bullish)
Overview:
Initia’s December 2025 Reactor Upgrade (block finality improved to 100ms) initially caused a 10% price crash due to “sell the news” behavior. However, on-chain data shows a 19% increase in daily active addresses since January 1.
What this means:
Developers are gradually adopting the faster infrastructure – Total Value Locked (TVL) stabilized at $34M after dipping to $28M post-upgrade. This “delayed bullishness” reflects market reassessment of the upgrade’s impact.
Conclusion
INIT’s rebound combines technical factors with fundamental reassessment of its upgraded network capabilities. While short-term resistance at $0.10 remains key, the improved blockchain performance could attract appchain developers in Q1 2026.
Key watch: Can INIT hold above its 30-day SMA ($0.0908) during the next BTC volatility spike? Monitor CMC Altcoin Season Index, currently at 28 (+75% MoM), for sector-wide risk appetite clues.