INJ Bounces 13% But Bears Hold Their Ground — Can Injective Reach $7?

Injective (INJ) staged a notable comeback, climbing 13.68% within a single 24-hour window after buyers stepped in to defend a critical support zone around $4.19. The price recovery pushed INJ to approximately $4.89, bringing its total market capitalization back up to $489.67 million. Trading volume during the same period reached $145.85 million, reflecting a modest 1.16% dip — yet the bounce was strong enough to prompt traders to reconsider the prevailing downtrend.

Despite the double-digit rally, not everyone rushed to the bullish side. Data from Binance's top trader accounts told a different story: only 41.09% of accounts held long positions, while a dominant 58.91% remained short. This resulted in a Long/Short Ratio of just 0.70 — a clear signal that many seasoned market participants were skeptical about the sustainability of the move. The heavy short positioning, however, carries a double-edged implication. Should the price continue pushing higher and break through key resistance levels, those short holders could be forced to cover their positions, potentially accelerating the upside move further.

On the derivatives side, the picture remained mixed. The Futures Volume Bubble Map entered what analysts describe as an overheating phase, indicating that trading activity surged rapidly as INJ bounced off support. While increased participation often signals growing interest, it doesn't necessarily point to a clear directional bias. More telling was the Futures Taker CVD, which stayed seller-dominant throughout the recovery — meaning aggressive sell orders continued to outpace buyer-initiated trades. For a sustained rally to take hold, consistent spot market demand will need to absorb this persistent selling pressure.

Looking at the daily chart, INJ reclaimed ground after several consecutive sessions of losses. However, the asset still trades well below prior swing highs of $5.68 and $7.00. The Relative Strength Index (RSI) climbed to 46.67 from near-oversold levels, signaling that bearish momentum has eased — though the indicator has not yet crossed into bullish territory. The RSI moving average sat at approximately 44.92, supporting the view that market structure is gradually improving.

The immediate technical battleground lies at the $5.00 psychological level. A clean reclaim of that barrier could open the door toward $5.68 as the next meaningful resistance. If buyers fail to hold that breakout, however, INJ risks revisiting the $4.19 support zone before any stronger recovery can take shape.

The path to $7.00 remains possible but conditional. Bulls need to demonstrate sustained demand through spot buying, push past $5.00, and force a short squeeze to build meaningful upward momentum. Until that sequence plays out, the market reflects careful hesitation rather than broad bullish conviction among leveraged traders.