INJ trades near $7.69, retesting a crucial breakout zone after exiting a descending channel.
Sustained support above $7.8 could fuel a rally toward the $9.5–$10 range.
A major supply zone near $12 may cap potential upside momentum if bullish continuation holds.
Injective (INJ) shows early signs of recovery as the token retests its breakout level around the $7.8–$8.0 range. Market participants are closely observing whether this area can act as firm support after weeks of consistent downward pressure.
Breakout Signals Potential Trend Shift
According to market observations, Injective has recently broken above its prolonged descending channel. The move indicates a shift from sustained lower highs to a possible transition phase of accumulation. The 12-hour structure suggests that traders are attempting to confirm a reversal by defending the breakout region.
In a recent technical outlook shared by CryptoPulse (@CryptoPulse_CRU), INJ is described as displaying early signs of a potential trend reversal. The tweet emphasized that the asset is currently retesting its breakout area at $7.8–$8.0. Should buying momentum strengthen, the next target range could extend toward $9.5–$10, with a major supply zone near $12.
Source: CryptoPulse_CRU via X
This structural change aligns with renewed interest across Layer-1 projects, where participants are positioning ahead of potential mid-term recoveries. However, traders remain cautious as failed retests in such setups can often lead to short-term corrective moves before renewed bullish continuation.
Consolidation Dominates Near Support Levels
As of writing data from CoinGecko shows INJ trading at approximately $7.69, down by 3.2% in the last 24 hours. The 24-hour price range of the token between $7.69 and $8.47 evidences that the price has been actively discovered after the augmented volatility during the intradays. However, the daily trading volume is robust despite the losses which are at more than 176 million with a current supply of 100 million tokens.
The market capitalization is almost $770 million meaning that there has been consistent investor interest despite the cautious moods. The price action indicates that INJ is leveling off following a series of profits taking around $8.40 where several rejections were created on a short-term basis. Current consolidation near $7.70 continues to attract attention as traders assess whether demand in this zone will maintain structure.
Technical readings show that the $7.50–$7.70 range serves as a crucial demand base. Being stronger than this area may justify the escape out of the horizontal channel and reaffirm short-term bullish faith. On the other hand, any lower movement below $7.50 may lead to a further retaliation of $7.00-$6.80 before any recovery operation.
Traders Eye Upside Targets and Supply Zones
If the breakout retest remains valid, the next immediate resistance lies between $8.20 and $8.40. A period of trading higher than $10 would be a good argument in favor of a medium-term trend reversal, particularly with volume growth behind the trend.
However, traders are encouraged to watch the significant supply zone of between $11.5- $12.5, at which previous phases of distribution had caused a heavy selling pressure. This segment can represent a possible limit of short-term rallies in the event of a liquidity surge in the market.
As the wider crypto market is still tentative, Injective is still showing resilience relative to a number of peers. The continuation of the previous $7.8 support and the re-taking of the $8.4 could be the basis of a new bullish formation as the market gets an assurance of a wider strength.
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