Injective Price Forecast: Can long-term trendline support withstand intensifying selling pressure?

• Following the previous day’s 6% fall, Injective remains below $7.50 on Thursday.
• Buying pressure looks weak in derivatives trading, with Open Interest falling and the taker buy-to-sell ratio holding below 1.
• Easing bullish momentum towards sub-bearish levels leaves INJ’s technical outlook mixed. 

Selling pressure continues to weigh on Injective (INJ) at press time on Thursday, extending its losses below $7.50 following a 6% drop the previous day. A preference for selling is also evident in derivatives trading: market orders keep absorbing resting bids as Open Interest in INJ futures declines. With a key support trendline in focus, INJ’s technical signals remain mixed.

Is Injective losing favour among derivatives traders?

Traders appear to have limited conviction in further gains as demand for Injective in the derivatives market weakens. According to CoinGlass, INJ futures Open Interest (OI) has fallen to 18.61 million INJ, continuing a steady slide from its October 17 peak of 23.52 million INJ. Selling pressure is also evident in the taker buy-to-sell ratio, which stands at 0.96, below 1. Sell orders account for 51.1% of taker orders, reinforcing the bearish bias.

Technical outlook: Can Injective hold its trendline support?

At $7.4800 at press time on Thursday, Injective is consolidating beneath the 50-day Exponential Moving Average (EMA) of $7.5558. It nevertheless remains above the reclaimed support trendline near $7.1868. Together, these levels leave the short-term bias largely neutral, while the broader constructive setup draws support from the 200-day EMA at $6.2712.

Momentum indicators, however, suggest short-term weakness. The Moving Average Convergence Divergence (MACD) has crossed beneath its signal line, while the Relative Strength Index (RSI) is near 46, pointing to diminishing bullish momentum.

Should prices decline, the trendline around $7.1868 provides the first support level. Below it lie horizontal support at $6.7140 and the 200-day EMA at $6.2712.

For an upward move, the first resistance level is the 50-day EMA at $7.5539. A more substantial hurdle lies at the horizontal resistance near $8.3490, where gains stalled last week. Closing above $8.3490 on a daily basis would pave the way for another test of resistance at $9.4130.

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