It seems that Injective (INJ) is in an internal boxing match: on one hand, it has the steel fist of token burns that reduce supply, and on the other hand, it's taking hits from the general market that is not picking up. The interesting part is to see who will throw in the towel first.
Will the push from INJ developers compensate for the macroeconomic liquidity exit? 🥊
The chart you bring us (INJ/USD) is the map of this battle. The area marked between $5.97 and $6.34 is not just any number; it is a historical resistance area. What does this mean? It is a ceiling that the price struggled to break when it was falling (it became a broken floor), and now that it wants to rise, it encounters it again.
Notice how the price broke this downtrend line (the diagonal dotted line) just in the last days and is now trying to consolidate (stay) above $6.34. For us, this is like the moment when an athlete crosses the finish line: they did it, but now they must maintain the pace.
🚀 The Triple Burn That Could Break the Ceiling
The price of Injective has some high-octane fundamental engines trying to push that price up, despite the crypto market in general being a bit dormant:
1. The Ethereum Call Effect (Mixed Impact): Injective recently launched its EVM mainnet. To put it simply, it's like they've put a direct access ramp to the Ethereum highway. Developers creating applications on Ethereum (using its language, Solidity) can now do it on Injective and access the liquidity of the Cosmos ecosystem. More than 40 apps have already been launched! It’s a master move to attract talent, but be careful, if Ethereum improves its fees (what they call gas), this incentive could decrease. It's a "we're doing well, but let's not sing victory yet."
2. The Ace Up the Sleeve: The Staked ETF (Bullish): This is where things get spicy. A request was made for a staked ETF of INJ in the U.S. An ETF is a fund that trades on the stock exchange and allows big investors (Wall Street) to buy easily without dealing with wallets. If this gets approved, it would be the first of its kind for an altcoin (a coin that is not Bitcoin) and, from experience (look at what happened with Bitcoin), we could see a price rally of 20% to 50%. The key lies with the SEC, the U.S. regulator, which still has doubts about whether staking (locking your tokens to earn rewards) is a security (an asset that requires more regulation). We will have to wait for their verdict in early 2026.
3. The Burn Program That Reduces Supply (Super Bullish): This is the most brutal. Injective has a mechanism that burns or destroys 60% of the commissions it generates. In October, they burned 6.78 million INJ! (that's about $37 million). If this continues at this rate, they are eliminating between 4% and 5% of the total supply per year. This is pure deflation, which means the remaining token becomes, in theory, scarcer and more valuable. This is the engine that is fighting against the market's gravity.
💰 The Million Dollar Question
For the Latin American pocket, the lesson is clear:
If you are an investor: You need to closely follow the $6.34 zone. If the price holds there, the narrative of token burning and the potential of the ETF could lead it to seek the next level, which according to the chart, is at $10.09. It’s a high-risk/high-reward asset.
If you are a developer: Injective is rolling out the red carpet for you. With EVM compatibility and the liquidity of Cosmos, it gives you a path to build without the killer fees of other chains.
We are facing an asset with solid foundations that is fighting while others are hibernating. The key is: will the strategy of developers and token burning be enough to overcome global uncertainty?
The Master Journalist tells you: Now is not the time to bet blindly, but to be strategic. The market is giving you the signal that something is moving, now it remains to see if it has the fuel to reach the moon.
