According to reports from AMBCrypto, Injective rallied 14% to reach a 6-month high of $6.3, successfully flipping the $6 level after recovering from a $5.2 dip. As of the latest reporting, Injective traded at $6.1, up 14.4% on daily charts, with its market capitalization rising 12% to $628 million. The altcoin made a clean jump above its short-term moving averages, with the 21-day MA reflecting the upside strength in the current market conditions. However, recent candles revealed hesitation as Short-Term Holders (STH) lock in profits while Bitcoin entered a corrective phase, resulting in a 5% pullback despite maintaining a bullish structure.
As reported by AMBCrypto, the price pump was largely driven by increased speculative demand and short covering, with over $441k worth of short positions liquidated as the market suddenly reversed. According to CoinGlass data, Injective's Open Interest climbed 32.3% to $151 million, while Derivatives Volume rose 11% to $337 million. The Long/Short Ratio increased to 1.8, where longs accounted for 64.8% of total positions compared to 35% shorts, indicating that market participants were mostly bullish and chose to chase the rally. Trading volume declined by 12.8% to $220 million over the past 24 hours, though the elevated volume highlights strong market participation amid the ongoing breakout and pullback phase.
According to AMBCrypto, with Injective hitting a 6-month high, investors who had been underwater rushed into the market and cashed out, resulting in the Spot Netflow turning positive after dropping into negative territory. At press time, Netflow reached $3.2 million, hitting levels not seen since August 2025, a massive jump from the previous day's -$1.28 million. This positive Netflow indicated that more INJ flowed into exchanges than out of them, with sellers dominating the spot market and increased supply potentially weakening the market structure. The RSI remained near 69 at press time, showing momentum still favors buyers rather than a complete trend reversal failure, though this represents a decline from the previous 73 reading.
As reported by AMBCrypto, Injective's Relative Strength Index (RSI) made a bullish crossover and jumped to 73, while the signal dropped to 66, indicating that buyers have strong control of the market but with minimal margin for dominance. The technical analysis suggests that if demand holds and pushes RSI above 80, Injective could make further gains and flip $7. However, if buyers fail to hold pressure from profit takers, the market correction will follow, with $5.4 as immediate support. The breakout above $6.29 attracted more than price momentum, with the underlying network strengthening as Injective's Total Value Locked (TVL) hovered around $12.81 million, rising by 7.82% in the last day, suggesting that capital continued entering the ecosystem despite the retracement.
According to AMBCrypto, the market now faces a key test as Injective pulls back from its breakout above $6.29. If buyers defend this level during the retest, it would confirm that former resistance has flipped into support and could open a path toward $7.80 and eventually $8.90. However, losing $6.29 would imply breakout buyers are losing conviction, potentially leading to a revisit of the $5.80-$6.00 demand zone as broader market caution and Bitcoin weakness encourage further profit-taking. The focus now shifts to the $6.80-$6.40 region, where if buyers absorb selling pressure, it would signal confidence remains intact and could support another test of $7.35 and potentially pave the way toward $8.00.
