I'm looking at the INJ/USDT chart and I see an interesting picture – the token has risen by 4.31% and is currently trading at 5.57. It seems good, but when you start to dig deeper, you realize that this is not a simple story at all. After a sharp rise to 6.11, the price collapsed to a minimum of 5.30, and now we are observing an attempt at recovery. The moving averages show an interesting dynamic: MA(7) at 5.56, MA(25) slightly lower at 5.47, and MA(99) higher at 5.63. This indicates that the short-term picture looks better than the medium-term one, but the long-term trend has not yet been definitively established.
The first thing that catches the eye is the huge spike that occurred at the beginning of the period. The price sharply jumped from the area of 5.50 to 6.11, and it was a real explosion. Look at the volume histogram below – there is a huge green column that corresponds to this moment. This was a moment of strong buying, possibly due to some news or a big player entering a position. But notably, this joy did not last long. The next candles already show red bodies, the price began to fall, and the decline was quite sharp.
Now $INJ is in a post-correction state and is trying to understand where to move next. The minimum of 5.30 is that level which the price touched and from which it rebounded. This is important support because if it holds, one can speak of bottom formation. But if the price drops below 5.30 again, the next stop could be around 5.20 or even 5.00 – a psychologically significant round number. That would be unpleasant, but in the volatile crypto market, nothing is impossible.
On the other hand, if we look at the current situation optimistically, the price is already above the short-term and medium-term moving averages. This means that buyers have started to return after the drop. If this momentum continues, the next target is to break through MA(99) at the level of 5.63 and further growth to test the area of 5.80-5.90. And if market sentiment is very positive, one can even hope for a retest of the previous high around 6.11 and an attempt to break through to 6.16, which can be seen on the right scale of the chart.
What I like about the current technical picture is that after a sharp drop, the price did not continue to crash but stopped and began to form a sideways movement with a slight upward tilt. This means that sellers have exhausted themselves at the level of 5.30, while buyers are gradually accumulating positions. Trading volumes remain moderate – around 1.45 million for INJ and nearly 8 million for USDT per day. This is not the crazy hype we saw at the peak, but also not complete apathy. The market is alive, just in a phase of contemplation.
If we talk about what to do in such a situation, it all depends on your strategy. If you are a trader who loves quick movements, now is a good moment to observe. You can wait for a clear breakout of the level 5.63-5.65 on increasing volume and enter a purchase with a time stop below 5.50. The target price for such a deal is the area of 5.90-6.00, where you can secure part of the profit. It makes sense to set a stop-loss below the minimum of 5.30 to avoid catching a false breakout.
If you are an investor holding a long-term position in $INJ, then the current situation is likely not a cause for concern. Fluctuations of 10-15% for @Injective are normal volatility. The project has strong fundamentals: it is a decentralized exchange supporting perpetual contracts, with fast transactions and low fees. They are building a real infrastructure for decentralized trading, and if this direction continues to develop, the token has great growth potential. So if you bought at levels below five dollars, you are currently in profit, and there is no sense in panic selling due to short-term fluctuations.
For those who are not yet in a position and are wondering whether to buy now, I would say this: there is never an ideal moment. The price of 5.57 looks quite fair after the correction. You are not buying at the very bottom around 5.30, but you are also not chasing the train at the top around 6.11. If you believe in the project and are ready to hold a mid-term perspective – you can consider entering part of the capital now, while leaving the rest for averaging if the price drops below. This is a classic risk-reduction strategy, where you do not put everything on one card.
Technically, the key levels right now are: support around 5.30-5.35, where the price has already touched and bounced, and resistance around 5.63-5.65, where the long-term moving average is located. A breakout of resistance will open the way to 5.80-6.00, while a breakout of support could lead to a test of the area 5.00-5.20. The price is currently stuck somewhere in the middle, and the next few days will show which side – bulls or bears – will take over.
As for the long-term forecast, I am quite optimistic here. Injective is not some hype project without substance. It is a working protocol with real users, trading volumes, and partnerships. They are integrating with various blockchains, expanding functionality, and attracting new projects. If decentralized exchanges continue to take market share from centralized platforms – and all trends indicate this – projects like Injective will benefit the most. The token $INJ is used for staking, governance, and fee payments, and with the increase in protocol activity, the demand for it will grow.
It is also worth considering the overall state of the crypto market. Right now, we are in quite an interesting phase, where Bitcoin is fluctuating but not sharply falling, and altcoins are trying to find their levels. If Bitcoin reaches new highs, it will give momentum to the entire market, and INJ, as one of the top altcoins in the decentralized finance segment, will receive its share of growth. But if Bitcoin corrects, altcoins may fall harder, and one must be prepared for such a scenario.
Personally, I like that after a sharp upward move, the token did not return to its initial positions but remained above. This indicates that there are real buyers who consider the current prices adequate and are willing to hold the token. If the entire move were purely speculative, we would have seen a quick pullback to previous levels. But that did not happen, which is a positive signal.
To summarize my thoughts: in the short term, $INJ is in a state of uncertainty between support at 5.30 and resistance at 5.65, and the next few days will show the direction. In the medium term, the token looks good – it has held most of the growth after the sharp move and is forming a base for further movement. In the long term, if you believe in the future of decentralized finance and @Injective as one of the leaders in this segment, the current levels look like a good entry point or averaging of an existing position.
What to do specifically depends on you. Aggressive traders may try to catch a rebound from support or a break of resistance. Conservative investors may build positions in parts, spreading purchases over several levels. And those who are not sure at all – it’s better to wait for a clearer picture when the price determines its direction. The main thing is not to chase hype, not to buy on emotions, and always use stop-losses if your strategy implies them. #Injective is a project with potential, but like any investment in crypto, it carries risks, and one must approach it consciously.
