Foreign media analysis suggests that Injective's token INJ has pulled back by about 5% after breaking through key resistance, but this correction has not yet broken the previously formed rebound structure. The market's current focus is on whether the $6.29 to $6.40 area can become effective support.
Over the past year, INJ has been on a prolonged downward trend, with prices falling from above $18 to around $2.61. As selling pressure at the bottom gradually eased, buying began to absorb supply, and prices subsequently rebounded to $6.29, even reaching a high of $7.14. The article argues that this level has repeatedly acted as resistance for rebounds, making any breakout of this level highly significant.
The pullback is synchronized with Bitcoin's adjustment.
The recent pullback is believed to be related to profit-taking by short-term holders, while Bitcoin's entry into a correction phase has also suppressed risk appetite. Nevertheless, the article mentions that INJ's RSI is still close to 69, indicating that buying momentum has not completely subsided; the current move appears more like a pullback to confirm a breakout rather than a trend reversal.
If buying pressure can be absorbed around $6.29, the assessment that the previous resistance level has turned into support will be strengthened. According to the article, this would leave room for the price to retest $7.80, or even $8.90.
Conversely, if the $6.29 level is breached, it indicates that follow-up buying after the breakout is weakening, and the price may return to the demand zone of $5.80 to $6.00. At that point, continued weakness in Bitcoin and cautious market sentiment could prompt more short-term funds to exit the market.
Trading volume and TVL remain key areas of focus.
The article also mentioned that INJ's trading volume in the past 24 hours was approximately $220 million, a 12.8% decrease from the previous period. Although the trading volume has declined, the overall level remains relatively high, indicating that market participation has not significantly disappeared after the breakout.
On-chain data shows that Injective's total value locked (TVL) is approximately $12.81 million, a 7.82% increase in a single day. This is seen as a signal that funds are still flowing into the ecosystem, indicating that the price correction has not led to a significant cooling of on-chain activity.
- 24-hour trading volume was approximately $220 million.
- TVL approximately US$12.81 million
- TVL's daily increase was approximately 7.82%.
The $6.40 level has become a short-term watershed.
The article points out that INJ has rebounded from around $5.80, with a cumulative increase of nearly 27%. After the rapid rise, some early investors chose to take profits, causing the price to fall back from the resistance level to around $6.59. This type of pause usually occurs after a sharp rise, when the market needs new buying to absorb the selling pressure above.
Next, the $6.80 to $6.40 range will be a key short-term area. If buyers can maintain support in this area, the price has a chance to retest $7.35 and move further towards $8. If $6.40 is breached, the pullback could extend to the $6.00 to $6.20 area.
