Injective Price Forecast: Long-term support trendline under threat as selling pressure intensifies

• Following a 6% fall the previous day, Injective trades just below $7.50 on Thursday.
• A taker buy-to-sell ratio below 1 and falling Open Interest signal weak buying interest in the derivatives market.
• Easing bullish momentum, now at sub-bearish levels, leaves INJ’s technical outlook mixed. 

After Wednesday’s 6% drop, Injective (INJ) continues to attract sellers, extending its losses below $7.50 at the time of writing on Thursday. Traders remain tilted towards selling in the derivatives market: market orders are continuing to absorb resting bids as Open Interest in INJ futures declines. A key support trendline remains in focus against a mixed technical backdrop for INJ.

Injective sees derivatives demand weaken

Traders appear to have little conviction in further gains as demand for Injective in the derivatives market wanes. According to CoinGlass, INJ futures Open Interest (OI) has fallen to 18.61 million INJ, continuing a steady retreat from its October 17 peak of 23.52 million INJ. Selling also accounts for 51.1% of taker orders, leaving the taker buy-to-sell ratio at 0.96, below 1, and reinforcing the sell-side bias.

Technical outlook: Injective holds above trendline support

At $7.4800 at the time of writing on Thursday, Injective is consolidating beneath the 50-day Exponential Moving Average (EMA) of $7.5558. It nevertheless remains above reclaimed trendline support around $7.1868. The near-term bias is therefore broadly neutral, with the wider constructive structure supported by the 200-day EMA at $6.2712.

Momentum indicators, however, point to short-term weakness. The Moving Average Convergence Divergence (MACD) has crossed beneath its signal line, while the Relative Strength Index (RSI) stands around 46, suggesting that bullish momentum is losing strength.

The trendline near $7.1868 provides the first downside support. Below that lie horizontal support at $6.7140 and the 200-day EMA of $6.2712.

For any recovery, the first resistance is the 50-day EMA at $7.5539. A more substantial hurdle lies at the horizontal resistance around $8.3490, where last week’s gains stalled. Should INJ close above $8.3490 on a daily basis, a retest of resistance at $9.4130 would come into view.

(The technical analysis of this story was written with the help of an AI tool. Know more.)