Injective faces weak momentum as volume drops, eyes $9.2 for bullish breakout

Injective (INJ) is showing early signs of a potential double-bottom price formation even as technical momentum indicators remain soft, raising questions about the strength of its short-term recovery. The protocol, designed for building decentralized finance (DeFi) applications, has seen growing activity in tokenized traditional assets, which could offer long-term support. Still, analysts caution that a more convincing trend reversal will only materialize if key resistance is reclaimed.

Potential double-bottom structure emerges

Recent analysis by Crypto With Gopal points to INJ stabilizing near $5.36 after forming two notable lows between $3 and $3.5. This pattern suggests buyers may be attempting to establish a support floor following a period of decline. However, market watchers note that the double-bottom setup is still unconfirmed; the price must break through resistance levels at $9.0 to $9.2, which represents the neckline of the formation.

INJ is trading close to $5.36 after hitting two key lows in the $3–$3.5 region. For a bullish reversal to gain traction, the price must reclaim resistance at $9.0–$9.2.

Analysts highlight that, should INJ decisively move above this range, technical projections suggest a potential upside to $16. Until then, the pattern remains in development and does not confirm a reversal.

Short-term technical indicators show pressure

On the four-hour chart, momentum for INJ appears constrained. TradingView data shows that the cryptocurrency rallied above $6.50 as volatility increased, but momentum weakened before the asset encountered resistance, with subsequent lower highs forming. INJ has since dropped below its interim moving average, currently around $5.84, and trades at approximately $5.31, hovering near the lower Bollinger Band at $5.14.

This proximity to the lower band points to persistent selling pressure and suggests the price could retest recent lows if buyer interest does not recover. Oscillator readings, including a Relative Strength Index (RSI) value of 31.63, put INJ just above the oversold threshold, signaling diminished buying power.

Previous bullish accumulation appeared near $4.80, but the dominant RSI trend remains negative. Defending the lower Bollinger Band at $5.14 could offer relief, while a breakdown below this level risks further declines.

Volume and derivatives participation decline

Trading volume and open interest have both receded in recent sessions. Data from CoinGlass shows that INJ’s trading volume dropped by 17.03% to $155.71 million, while open interest fell 9.13% to $109.60 million. The decline in both parameters reflects reduced participation in derivatives as prices fell. Market participants note that renewed increases in volume and open interest would be more compelling if accompanied by upward price movement.

Metric Current Value Change (%) Trading Volume $155.71 million -17.03% Open Interest $109.60 million -9.13%

Real-world asset activity on Injective

Alongside price action, Injective’s ecosystem has seen rising engagement with real-world asset perpetuals. The protocol reported $214.9 million in trading volume for these markets over the past month, with equities representing $127.3 million, foreign exchange $49.0 million, commodities $15.4 million, pre-IPO markets $15.3 million, and indices $7.8 million.

These figures suggest increased linkages between decentralized venues and traditional market products on Injective. Nevertheless, the immediate focus remains on the technical structure of the token itself, as a move above $9.0–$9.2 is seen as essential to confirming any double-bottom reversal.

Mini dictionary: Injective is a layer-1 blockchain purpose-built for decentralized finance, enabling the creation and trading of derivatives, spot, and real-world asset markets in a permissionless manner.

Stabilizing above immediate support may bring short-term strength, but any bullish momentum will hinge on a confirmed breakout that validates the potential double-bottom structure.

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