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- INJ remains above a major breakout level despite recent selling pressure.
- Strong TVL growth and network activity continue to support bullish sentiment.
- The $6.40 support zone could determine whether Injective targets $8+ or enters a deeper pullback.
Injective (INJ) is entering a critical phase after posting a strong recovery from its long-term lows. The decentralized finance-focused token recently climbed above a major resistance level, but a wave of profit-taking and broader crypto market weakness has sparked a pullback that now puts an important support zone under the spotlight.
After spending much of the past year in a sustained decline, INJ has shown signs of renewed strength. The token recovered from lows near $2.61 and gradually built a base as selling pressure eased and buyers returned. That recovery gained momentum when INJ broke above the closely watched $6.29 resistance level, a price area that had repeatedly blocked previous rallies.
Breakout Faces First Real Test
The move above $6.29 helped push Injective above $7.00, with the token reaching as high as $7.35 before encountering resistance. The rally was supported by stronger trading activity and growing participation across the ecosystem.
However, recent price action suggests traders are becoming more cautious. Some short-term holders have started locking in gains, while Bitcoin’s recent weakness has added pressure across the broader crypto market. As a result, INJ slipped roughly 5% from recent highs.
Despite the decline, technical indicators continue to favor the bulls. The Relative Strength Index (RSI) remains near overbought territory, indicating that buying momentum has not completely disappeared.
On-Chain Growth Supports Bullish Outlook
Beyond price action, Injective’s network metrics remain encouraging. Capital continues to flow into the ecosystem, with Total Value Locked (TVL) posting healthy daily growth.
The combination of rising on-chain activity and strong market participation suggests investor interest remains intact despite the recent retracement. Such alignment often strengthens the case for trend continuation, especially when accompanied by stable support levels.
Still, sustained growth will be important. A slowdown in volume or ecosystem activity could weaken confidence and limit upside potential.
Why the $6.40 Zone Matters
Market attention is now centered on the $6.40-$6.80 region, which previously acted as a launchpad for the recent breakout. If buyers successfully defend this area, it would reinforce the view that former resistance has turned into support.
A successful retest could allow INJ to revisit the $7.35 high and potentially target the $7.80-$8.90 range in the coming sessions.
On the other hand, failure to hold the support zone may trigger a deeper correction. In that scenario, the token could retreat toward the $6.00-$6.20 demand area as traders reduce risk amid broader market uncertainty.
Also Read: Injective Price Prediction 2025: Can INJ Rebound?
Injective remains in a constructive uptrend despite its recent pullback. The breakout above long-standing resistance marked a significant shift in market sentiment, but the next move depends on whether buyers can defend key support levels. As traders monitor the $6.40 region, the coming days could determine whether INJ resumes its recovery or enters a deeper consolidation phase.
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 your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
