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According to a recent analysis by Traders Union, the cryptocurrency Injective INJ is trading at $5.76 today, up 7.06%. Despite this significant daily increase, technical analysis points to overall weakness in the market, with medium- and long-term trends still dominated by sellers. This report discusses INJ’s current market conditions, momentum signals, and its price forecast for the coming days in detail.
Market Situation and Technical Analysis
Currently, INJ is trading at $5.76, slightly above its 20-day moving average of $5.71. While this suggests a stability in the short-term, the price is well below the 50-day moving average of $6.69 and the crucial 200-day moving average of $11.10. This position clearly indicates that the medium and long-term trend is still under selling pressure. The closest dynamic resistance is observed at the daily Ichimoku Kijun level of $6.01. Furthermore, there is no indication of any positive crossover between the 50-day MA and the 200-day MA, confirming the absence of a strong long-term bullish trend.
Despite today’s 7.06% price increase, INJ’s daily momentum signals are mixed. Convergence Divergence is giving a strong sell signal, and ADX is weak, highlighting the weakness of the overall trend despite the price momentum. With the RSI at 41.90 and the CCI at –66.13, the market is neither overbought nor oversold to any extremes. However, the short-term oscillators are overbought. The BBP is showing a bearish -0.01 from neutral, indicating a slight bearish bias in intraday trading. Despite trading near the daily high of $5.72, these weak momentum signals suggest a need to be cautious about the market.
According to Traders Union’s analysis, the expected range for INJ for the next five trading days is $5.30 to $5.92. With all weekly signals including the weekly RSI, ADX, MACD, and MA-50 all bearish, the probability of a price move higher is considered to be below 20%, which means that there is a possibility of further decline.
The baseline scenario is that sideways consolidation will continue between the current levels of $5.30 support and $6.01 resistance.
A bullish scenario would be possible only if INJ can close above $6.01, which could push the price to $5.92 or higher. However, this scenario is unlikely unless momentum improves significantly.
On the contrary, in a bearish scenario, if selling pressure increases and the $5.30 support level is broken, the price could move further down towards a new low.
Anton Kharitonov, an expert at Traders Union, describes the INJ technical situation as Fragile on Injective. He acknowledges that there is short-term stability above $5.71, but at the same time emphasizes that the decline in long-term indicators and failed bullish setups are hindering the upside potential.
According to Kharitonov, "As long as INJ trades below $6.01, the chances of a meaningful uptrend remain minimal." He added, "The base case is consolidation or further downside momentum — I don't believe in bullish movement until $6.01 is recovered." In conclusion, today's price increase may be an intraday or temporary movement but the underlying technical structure of the market and the long-term trend are still in favor of sellers, which suggests caution in trading in the coming days.
