Injective (INJ) Eyes Potential Breakout Amid Bullish Wedge Formation

#Injective🔥 (INJ), the native token of the decentralized finance (DeFi) blockchain network focused on building and trading decentralized applications (dApps), is attracting renewed investor interest as technical indicators point to a potential mid-term rally.

As of the latest data from CoinMarketCap, INJ is trading at $12.02—registering a 4.24% increase in the last 24 hours—alongside a significant 54.59% spike in trading volume. This heightened activity comes as price action consolidates within a prominent falling wedge pattern on the weekly timeframe, often considered a bullish setup.

Technical Analysis: Bullish Wedge and Key Support

The weekly chart shows $INJ forming a large bullish wedge, a pattern typically associated with a breakout to the upside. While the token previously tested the upper boundary of this wedge without success, bears now appear to be losing momentum, and the $11 support zone has emerged as a crucial battleground where bulls are beginning to assert control.

Market Sentiment and On-Chain Metrics

Recent on-chain and derivative market data reinforce the potential for upward movement. Open interest has increased by 1.67%, suggesting the early stages of renewed bullish momentum amid a brief rally and ongoing price consolidation. Furthermore, the Open Interest (OI)-Weighted Funding Rate has turned positive—an indication of growing investor confidence.

The Moving Average Convergence Divergence (MACD 12,26) and several short-term moving averages on the weekly chart are flashing buy signals, reflecting a shift toward bullish sentiment. However, the 24-hour long/short ratio currently stands at 0.9091, according to Coinglass—indicating a slightly bearish bias in the short term, with more traders holding short positions than long.

Key Levels to Watch

A breakout above the $21 resistance level—aligned with the upper boundary of the falling wedge—could serve as a catalyst for a broader uptrend. On higher timeframes, bulls are setting their sights on the $55–$65 target zone, pending a confirmed breakout and sustained bullish momentum.

Outlook

While INJ appears technically primed for a breakout, investors should monitor trading volume, open interest, and price momentum closely. A decisive move above key resistance levels could confirm the start of a sustained rally, though short-term caution remains warranted given current mixed sentiment indicators.

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