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- INJ jumped 14% in 24 hours, supported by an 85% increase in trading volume.
- Long traders have only a narrow advantage, with the perpetual long-to-short ratio at 1.019.
- Selling pressure is rising on major exchanges, leaving the INJ price rally vulnerable to a reversal.
Injective (INJ) has delivered a sharp short-term rebound, but derivatives data suggests traders are becoming less confident about the rally. While INJ gained 14% over the past 24 hours, selling pressure has been building across major perpetual exchanges, creating a potential warning for the token’s near-term outlook.
The mixed signals leave INJ at an important technical and market crossroads. Spot-market activity remains constructive, but derivatives positioning is showing signs of hesitation.
INJ Long-to-Short Ratio Gives Bulls a Narrow Edge
The INJ perpetual market remains marginally bullish, with the long-to-short ratio at 1.019 at press time. That means long positions represented roughly 50.76% of total perpetual-market volume.
However, the advantage is small and has been weakening. The ratio previously reached 1.037 before declining steadily, suggesting that growing selling activity has reduced the dominance of bullish traders.
That trend matters because a strong price advance accompanied by weakening long positioning can leave a rally vulnerable if buying momentum fades.
INJ has already struggled over a longer timeframe. The token fell 8.91% during the previous 30 days, meaning the latest 14% jump represents a significant short-term recovery but does not necessarily confirm a broader trend reversal.
Binance, LBank and Bybit See Heavy Selling
Selling pressure is particularly visible on the largest exchanges by INJ perpetual volume. Binance, LBank and Bybit collectively accounted for more than $97 million in volume, with sellers controlling more than 51% of activity on each platform.
This suggests some derivatives traders are positioning defensively or betting against further upside.
Still, the broader market picture is more encouraging. INJ’s volume had increased 85% to approximately $100.86 million alongside the price advance. Historically, rising volume during a price rally can strengthen the case for continued momentum because it indicates greater market participation.
The key question is whether that demand can persist while derivatives traders become increasingly cautious.
Funding Rate Points to Market Uncertainty
The open-interest-weighted funding rate offered another mixed signal. At press time, it stood at 0.0003%, showing a slight bullish tilt but remaining close to neutral.
Rather than confirming strong conviction in either direction, the reading points to indecision. Traders are not aggressively leaning toward either longs or shorts, leaving INJ exposed to a potentially sharp move if sentiment changes.
For now, the 14% INJ rally is supported by stronger trading volume, but weakening long exposure and elevated selling on major exchanges remain risks. Traders may therefore watch whether buying volume continues to expand before assuming the recovery has developed into a sustained uptrend.
Also Read: Injective (INJ) Price Surges 9% After Major SEC Regulatory Breakthrough
Injective’s latest rally has improved its short-term outlook, but derivatives data shows that confidence remains fragile. A continued rise in volume and sustained spot demand could support further gains, while additional deterioration in long positioning could put the recovery under pressure. For now, INJ remains at a crossroads, with the next move likely to depend on whether buyers can overcome growing resistance in the perpetual market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
