Injective could dip further as futures Open Interest drops

Key Takeaways

• Injective (INJ) was trading around $7.42 on Thursday, extending its downward movement following a 5.7% drop in the prior session.
• The futures taker buy-to-sell ratio sits at 0.96, with sell orders representing 51.1% of overall taker volume, indicating that bears hold a narrow advantage.
• A breakdown beneath the $7.19 support trendline could open the door for further declines toward $6.71 and $6.27, whereas a move above $8.35 could target $9.41.

Injective (INJ) remained under pressure on Thursday, lingering below $7.50 as weakening derivatives activity and persistent sell orders dimmed prospects for a short-term recovery.

The token traded around $7.42 after dropping approximately 6% during Wednesday’s session, with market participants showing limited appetite for a sustained rally.

CoinGlass metrics show a steady decline in futures Open Interest since mid-October, while market sell orders consistently outpace aggressive buying.

Injective futures OI falls as traders reduce exposure

Derivative market activity for Injective has noticeably cooled over recent weeks.

According to CoinGlass data, INJ futures Open Interest declined 4% over the past 24 hours, bringing the total to $140.77 million.

A continuous decrease in Open Interest typically signals position unwinding, pointing to reduced speculative demand or growing uncertainty around market direction.

Further data from CoinGlass indicates that sellers maintain a slight upper hand in the INJ futures market.

The INJ taker buy-to-sell ratio stands at 0.96, demonstrating that aggressive market sell orders exceed aggressive buy orders.

A ratio below 1 generally indicates that active traders are more willing to fill existing bids than lift available ask offers.

Injective technical outlook: INJ tests the crucial $7.19 trendline support

Injective’s daily chart reflects a balanced technical setup, with the asset moving between a key moving average and an ascending support line.

As of Thursday, INJ traded near $7.42, just beneath its 50-day Exponential Moving Average (EMA) at $7.55.

The failure to reclaim this technical level indicates that buyers have yet to regain control over the short-term trend.

However, INJ remains above an ascending trendline support near $7.19, while the 200-day EMA near $6.27 also sits below current price levels.

Maintaining a position above this long-term moving average suggests that the broader structural framework has not broken down as severely as recent price drops might imply.

Nevertheless, momentum gauges are trending weaker. The Moving Average Convergence Divergence (MACD) has crossed below its signal line, pointing to fading bullish momentum.

Similarly, the Relative Strength Index (RSI) registers around 44, placing it slightly below the neutral 50 mark.

This reading reflects growing seller influence, though the market has not crossed into oversold territory.

The rising support trendline near $7.19 serves as Injective’s immediate line of defense on the downside.

A sustained break below this floor would weaken the technical landscape, signaling that bears are taking stronger control.

Should INJ decisively break the trendline, the next significant support zone rests at $6.71. If $6.71 fails to hold, price action could pull back to the $6.27 region.

On the flip side, Injective could attempt a rebound if buyers successfully defend the $7.19 support level.

The initial hurdle to clear is the 50-day EMA near $7.55. A sustained recovery above this moving average would signal improving buy volume and could encourage traders to push toward higher resistance.

The next major obstacle sits at $8.35, a horizontal resistance barrier that capped rallies the prior week.

A decisive daily close above $8.35 would bolster the bullish case and potentially pave the way for a rally toward $9.41.