Injective sees a dip — What is pressuring the token

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Injective slides 10.23% today to $3.16

Highlights

Injective deployed a chain upgrade introducing a dynamic INJ gas fee mechanism, aiming to strategically optimize on-chain revenue and lower user transaction costs.
This upgrade targets enhanced efficiency and economic performance across the Injective ecosystem, supporting improved conditions for network participants.
INJ is trading at $3.16, well below critical MA-20 ($3.23), MA-50 ($4.13), and MA-200 ($8.08), with a bearish technical outlook and major support at $2.24.

Ecosystem upgrade targets revenue and cost efficiency amid challenging sentiment

Injective has introduced a new chain upgrade implementing a dynamic INJ gas fee mechanism aimed at optimizing revenue generation and reducing transaction costs for users across its network. This update is designed to improve both efficiency and economic performance of on-chain activities. The chain upgrade was announced as part of efforts to enhance conditions for Injective ecosystem participants.

Anton Kharitonov, expert at Traders Union, sees continued technical weakness in Injective as the asset trades below all major moving averages with a sizable 10.23% daily loss. He notes the latest chain upgrade aimed at reducing costs and improving efficiency, but believes sentiment remains negative, as momentum and trend indicators highlight persistent selling pressure. The lack of solid support nearby and the high ADX reading increase the risk of further declines. He is skeptical that the latest ecosystem improvements will offer near-term relief. "Unless Injective regains critical resistance at $3.58, I see further downside as the dominant scenario for now."

Viktoras Karapetjanc, expert at Traders Union, highlights the positive implications of Injective’s dynamic fee upgrade in fostering ecosystem efficiency and improved user economics. He argues that such protocol innovations support the foundation for future growth, even amid short-term price turbulence. Karapetjanc views the recent move as strengthening the bullish structure long term and believes market participants will soon value the enhanced fundamentals. "Despite current volatility, I see opportunity ahead and expect Injective’s upgraded network to attract renewed interest and further adoption."

Jainam Mehta, market strategist, assesses the setup as broadly bearish but notes divergence among oscillators. He points to the sideways trading corridor and possible contrarian interest if previous lows hold. Mehta finds tactical opportunities in mean-reversion strategies as volatility spikes. "I would closely watch for a momentum shift near $2.24, as a failed breakdown could offer a short-term rebound setup."

Key resistance and weak momentum reinforce broad sell signals under pressure

The nearest dynamic resistance is at the Ichimoku Kijun level ($3.58), with little technical support until previous lows. Momentum remains weak as the daily MACD signals a strong sell and ADX is above 34, showing an active downtrend despite some underlying strength. RSI is at 45 and Stoch RSI is neutral, while CCI gives a slightly bullish bias, pointing to some divergence among oscillators. BBP signals buyers are attempting to regain ground intraday, yet the price is marking a 10.23% decline after a gap down from yesterday’s close ($3.52 to $3.32) and is now trading near the session low within a moderately volatile and pressured environment. Momentum indicators and daily performance broadly confirm ongoing bearishness, with only minor mixed signals from oscillators.

Last time, analysts noted that Injective traded below key moving averages, with bearish momentum confirmed by MACD and weak RSI readings both daily and weekly, while immediate resistance remains at the Ichimoku Kijun near $3.58. Intraday signals and price action indicate persistent selling pressure and a probable sideways-to-lower bias, with limited likelihood of a significant upward reversal in the near term.

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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