Injective's token INJ recently rebounded from around $5.20, breaking through $6 and reaching $6.30 during trading, marking a new high since November 2025. At the time of writing, INJ was trading at $6.10, a 24-hour increase of approximately 14.4%, with its market capitalization rising to $628 million, indicating a return of capital inflows.

Derivatives data also strengthened.

This surge was primarily driven by a rebound in speculative demand and short covering. As prices rose rapidly, approximately $441,000 worth of short positions were liquidated, with some short sellers forced to close their positions while new funds continued to enter the market.

CoinGlass data shows that INJ open interest increased to $151 million, a daily increase of approximately 32.3%; derivatives trading volume increased to $337 million, an increase of approximately 11%. The simultaneous expansion of both open interest and trading volume indicates a significant increase in market participation, with both long and short positions being increased.

Looking at the position structure, the proportion of long positions is also rising. The long-short ratio has risen to 1.8, with longs accounting for approximately 64.8% and shorts for approximately 35%. This indicates that short-term traders are generally bullish and continue to follow the upward trend.

Net inflows into exchanges turned positive

However, after prices rose to a relatively high level, some holders who had previously suffered losses began to cash in their profits, leading to increased selling pressure in the spot market.

Data shows that net inflows into INJ spot trading have turned positive from the previous day, currently standing at approximately $3.2 million, a significant rebound from the previous -$1.28 million, and reaching a relatively high level since August 2025. A positive net inflow typically indicates more tokens entering exchanges, suggesting increased selling pressure.

Historically, increased supply on exchanges has often diminished short-term scarcity and easily led to price pullbacks. In other words, while bullish sentiment remains in the derivatives market, there are already more obvious signs of profit-taking in the spot market.

Short-term focus is on $7 and $5.4.

In terms of momentum indicators, the INJ's Relative Strength Index (RSI) has risen to 73, placing it in a relatively strong range, indicating that buying pressure still prevails. However, this level also means that prices are approaching a short-term overheated zone, and further upward movement will require continued new capital inflows.

If demand remains strong and bulls continue to dominate the derivatives market, INJ still has a chance to test the $7 mark. However, if spot selling pressure intensifies and buying support weakens, prices may fall back, with $5.4 becoming the first support level to watch in the short term.