INJ weekly report: falls below $5 with support near $4.20

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Injective falls 5.66% this week

Highlights

Injective approved governance proposal IIP-617, enacting a major tokenomics overhaul with an aggressive reduction in native token issuance to increase scarcity.
The new policy aims to double INJ’s deflation rate while continuing the network’s automated buyback-and-burn system to support long-term supply reduction.
Cboe and Canary Capital filed applications for staked INJ ETFs, targeting institutional access to fund-based staking rewards and expanding the token’s investment profile.

Deflation strategy and ETF filings boost tokenomics narrative this week

Injective implemented a major tokenomics overhaul following the approval of governance proposal IIP-617, which introduces an aggressive reduction in native token issuance and maintains the network’s automated buyback-and-burn system. This move aims to double INJ’s deflation rate, prioritizing token scarcity as a core strategy. Additionally, Cboe and Canary Capital filed applications for staked INJ ETFs to enable fund-based staking rewards.

Consistent weekly selling underscored by bearish technicals and oversold indicators

Weekly technical analysis emphasizes strong and consistent selling momentum, as INJ trades well below the MA-20, MA-50, and MA-200 on the weekly chart. The closest dynamic resistance is at the Ichimoku Kijun ($9.65), with immediate support near recent lows and the lower end of the current weekly range. Technical indicators support a bearish outlook: the weekly MACD signals a strong sell, the ADX registers at 23.66 (sell), and oversold readings appear on the RSI (33.37), Stoch RSI (21.81), CCI (–78.25), and BBP (–1.17). Despite the strong downward momentum, the Awesome Oscillator remains neutral.

Further declines favored as consolidation signals bearish momentum for next week

For the next 5–7 trading days, INJ is expected to consolidate between $4.20 and $4.85, reflecting recent price action and sustained negative sentiment on the weekly timeframe. There is less than a 20% probability of a meaningful rebound, making further downside or sideways movement the baseline scenario. Should buyers regain control, a sustained move above $4.85 could open the way to higher resistance; however, current technical pressure suggests a breakdown below $4.20 is more likely, potentially exposing new lows if bearish momentum persists.

Anton Kharitonov, expert at Traders Union, notes that Injective has shown persistent bearish momentum this week, trading well below all major long-term moving averages. Despite a major tokenomics overhaul and ETF filings, market sentiment remains weak. Key indicators, including MACD and ADX, reinforce strong selling pressure while INJ stays confined near the lower bound of its range. Technicals point to continued downside or sideways action in the coming week, with only a slim chance for a rebound above $4.85. He sees further risk of a breakdown if $4.20 fails to hold. "Unless price decisively reclaims $4.85, I remain defensive and skeptical of any meaningful recovery for INJ this week."

Previously it was noted that Injective experienced entrenched bearish momentum across all observed trends, trading well below its major weekly moving averages. Technical indicators continued to reinforce persistent bearish pressure with limited prospects for near-term recovery.

Source of Data: INJ Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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