Injective (INJ) saw a 13.68% rally over the past 24 hours as buyers returned after defending a crucial support zone near $4.19.
The rebound has risen Injective at around $4.89 and pushed its market capitalization to $489.67 million despite a slight decline in trading volume.
Commercial activity reached $145.85 million, down 1.16% over the same period. Despite this, the rally has encouraged traders to reassess the recent downtrend after INJ produced a strong rebound from its latest lows.
Why do the best traders always bet against INJ?
The price recovered strongly, but top Binance traders maintained a bearish stance throughout the rally. Long accounts accounted for only 41.09%, while 58.91% of accounts remained short, producing a Long/short ratio of 0.70.
The imbalance suggests many experienced traders expect the rally to lose steam despite the double-digit gain.
Despite this, continued short positioning also increased the possibility of additional buying pressure if the price continued to rise. A sustained move beyond nearby resistance could have forced bearish traders to close their positions, fueling the advance.
However, until this happens, the market continues to reflect caution rather than broad bullish conviction on the part of leveraged participants.
Buyers returned, but sellers still controlled order flow
Derivatives data presented a mixed picture despite the strong recovery.
THE Futures Volume Bubble Map entered an overheating phase, showing that trading activity accelerated rapidly as prices rebounded from support.
Increasing participation often reflects stronger interest from buyers and sellers rather than directional certainty. However, the CVD Futures Taker remained dominant among sellers, indicating that market sell orders continued to outweigh aggressive buying activity during the recent rally.
Now, the rally relies heavily on sustained spot demand to overcome persistent selling pressure before another rally can develop.
Can buyers reclaim the $5 barrier?
INJ rebounded strongly after defending the $4.19 support level and climbed towards the psychological resistance at $5.00.
The daily chart shows that buyers have regained control after several sessions of decline, although the price is still trading below previous highs around $5.68 and $7.00.
Meanwhile, the Relative Strength Index recovered to 46.67 after recently approaching oversold territory, showing that the bearish pressure has eased significantly without entering bullish territory.
The RSI moving average stood near 44.92, reinforcing the improving structure as buying interest returned. If buyers maintain the current rally and reclaim $5, the next upside target could emerge around $5.68.
Failure to reach this level could encourage a retest to $4.19 before a stronger rally develops.
Will Injective reach $7 next?
INJ convincingly recovered from a significant support zone, although several signals still reflected cautious market sentiment.
Leading traders continued to favor short positions, while taker activity remained dominant to the benefit of sellers despite the rebound.
If buyers reclaim $5 with sustained demand, the price could reach $5.68 before challenging $7.00.
Final Summary
- INJ recovered strongly from key support, but traders’ bearish positioning continued to limit sentiment.
- A break above $5 could strengthen the rally, while a rejection could reignite selling pressure.
