Injective [INJ] posted a 13.68% recovery over the past 24 hours as buyers returned after defending a crucial support area near $4.19. According to reports from AMBCrypto, the rebound lifted Injective to around $4.89 and pushed its market capitalization to $489.67 million despite a slight decline in trading volume. Trading activity reached $145.85 million, down 1.16% over the same period, but the recovery encouraged traders to reassess the recent downtrend after INJ produced a strong bounce from its latest lows.
Despite the strong recovery, Binance's top traders maintained a bearish stance throughout the rally. As reported by AMBCrypto, long accounts represented just 41.09%, while 58.91% of accounts remained short, producing a Long/Short Ratio of 0.70. The imbalance suggested many experienced traders expected the recovery to lose strength despite the double-digit gain. However, the continued short positioning also increased the possibility of additional buying pressure if the price continued higher, with a sustained move beyond nearby resistance potentially forcing bearish traders to close positions.
Derivatives data presented a mixed picture despite the strong recovery, according to AMBCrypto analysis. The Futures Volume Bubble Map entered an overheating phase, showing trading activity accelerated rapidly as price rebounded from support. However, the Futures Taker CVD remained seller dominant, indicating market sell orders continued to outweigh aggressive buying activity during the recent recovery. The rally now depends heavily on sustained Spot demand to overcome persistent selling pressure before another leg higher can develop.
INJ rebounded sharply after defending the $4.19 support level and climbed toward the psychological $5.00 resistance, as reported by AMBCrypto. The daily chart showed buyers regained control after several sessions of decline, although price still traded beneath the previous swing highs around $5.68 and $7.00. The Relative Strength Index recovered to 46.67 after recently approaching oversold territory, showing bearish pressure eased considerably without entering bullish territory. The RSI moving average stood near 44.92, reinforcing the improving structure as buying interest returned.
If buyers maintain the current recovery and reclaim $5, the next upside objective could emerge around $5.68, according to AMBCrypto analysis. However, failure to secure that level could encourage another retest of $4.19 before a stronger recovery develops. The analysis suggests that while INJ recovered convincingly from key support, several signals still reflected cautious market sentiment, with top traders continuing to favor short positions and taker activity remaining seller-dominant despite the rebound. Additionally, Injective launched its Vulcan upgrade (v1.20.0) between June 4-9, 2026, significantly reducing oracle gas costs by 90% for EVM smart contracts. This upgrade introduces a new oracle engine and a precompile that allows direct on-chain price data access, potentially improving the platform's efficiency and attractiveness to developers.
