Injective (INJ) Rebounds 7% After Recent Pullback

The recent decline in Injective (INJ) has drawn renewed attention from traders after an impressive rally earlier this spring. Between early April and early June, the token surged nearly 170%, reflecting a significant improvement in sentiment and strong buying activity.

However, recent price action suggests that momentum may be shifting, raising the question of whether INJ is entering a deeper correction or simply experiencing a temporary pullback within a broader trend.

Injective (INJ) technical analysis

INJUSD - 1 Day Time Frame

From a daily timeframe perspective, INJ initially appeared to be establishing a longer-term bullish structure. The strength of this move was particularly evident on May 29, when the token gained more than 22% in a single day. This impulsive rally created a key support zone, highlighted in blue on the chart, which initially served as the main structural foundation for the bullish scenario.

However, the market was unable to maintain this structure. Following a decline of approximately 34%, INJ closed decisively below the support zone, signaling a potential shift in market dynamics. This breakdown is technically significant, as it suggests that the previous bullish momentum may be weakening and that sellers could be regaining control of the market.

The zone that previously acted as support may now be viewed as a potential resistance area. As long as price remains below this level on the daily timeframe, the bearish scenario could remain valid, with the probability tilted toward further downside continuation.

Based on this development, some traders may consider short positions, with a protective stop loss placed above the internal high near $7.50. This level represents the main invalidation point of the bearish setup, as a sustained move above it could indicate that sellers are losing control of the current structure.

From a risk-management perspective, it may also be important to monitor the former support zone closely. If INJ manages to close back above this area on the daily timeframe, traders could consider reducing part of a short position before the final stop-loss level is reached. Such a move could suggest that bearish momentum is weakening and that price delivery may be shifting once again.

Injective (INJ) price target

If bearish momentum continues, the nearest Sell-Side Liquidity zones could become the most logical downside objectives. The first major area of interest sits around $2.50, which may attract price if selling pressure remains dominant.

Should weakness persist beyond this level, attention could shift toward the next significant liquidity zone near $1.00. This area represents a deeper downside target and could become relevant if broader market conditions remain unfavorable.

For now, the technical structure favors sellers following the clear breakdown below the former support zone. As long as INJ remains below this area, downside scenarios may continue to dominate. However, a confirmed daily close back above the broken support zone could weaken the bearish outlook and signal the need for a reassessment of the current market structure.

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