Circle USDC launch lifts Injective 7.55% in active trading

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Injective jumps 7.55% on USDC launch

Highlights

Circle has enabled native USDC issuance and cross-chain stablecoin transfers on the Injective network, removing the need for third-party bridges.
Injective now benefits from deeper liquidity and direct interoperability with major ecosystems like Ethereum and Solana, supporting increased trading and lending activity.
INJ trades with strong short-term bullish momentum near session highs but faces extreme overbought conditions, with a projected five-day range of $4.35 to $4.75 and elevated correction risk.

Liquidity and network utility expand as native USDC launches on Injective

Circle has launched native USDC and enabled its Cross-Chain Transfer Protocol on the Injective network, allowing direct stablecoin issuance and seamless stablecoin transfers without the need for bridging. This development immediately broadens liquidity and transactional capabilities for trading and lending applications within Injective, benefiting both users and institutional participants. Additionally, Injective's integration with major networks supporting CCTP, such as Ethereum and Solana, positions the ecosystem for stronger interoperability and further utility growth.

Overbought momentum and resistance shape technical outlook

Technically, INJ is trading above both the SMA-20 at $3.69 and the SMA-50 at $3.27, with the SMA-200 at $4.49 acting as overhead resistance. The Ichimoku Kijun level on the daily chart sits at $3.69, which is now likely to function as immediate support. Bullish setups are confirmed by both MACD and ADX readings, while momentum oscillators indicate strong overbought conditions: daily RSI at 73.59, Stoch RSI at 100, and CCI at 168.89. Bull/Bear Power stands at 0.52, showing strong buying activity within the session, and the Awesome Oscillator remains positive. Elevated volatility and session highs point to heightened trading activity, but extreme overbought readings signal risk for a short-term pullback or profit-taking.

Sideways or mild correction likely as overbought risks cap gains

Looking ahead, INJ is expected to trade within a $4.35 to $4.75 volatility band relative to current levels over the next five sessions. Weekly indicators flag a low probability (less than 20%) for further sustained price appreciation, making a sideways or mildly corrective scenario more probable. If bulls manage to push above $4.75, further resistance may come into play, but the likelihood is limited by prevailing overbought conditions. A close below $4.35 would increase the risk of a more substantial correction, exposing INJ to further declines toward underlying support levels.

Anton Kharitonov, expert at Traders Union, sees the native USDC and CCTP integration as a fundamental positive for Injective’s ecosystem, directly bolstering network liquidity and utility. However, he remains cautious given extreme overbought technical signals and resistance at $4.49. The base case is for sideways or mildly corrective movement unless bulls can break $4.75. "Until we see a confirmed close above $4.75, I remain defensive and expect increased risk of profit-taking or a short-term correction."

Earlier, analysts noted that Injective was displaying a short-term recovery while remaining constrained by lingering downward momentum and overbought technical conditions. The latest price surge, coupled with Circle's native USDC launch and strong technical signals, reinforces the notion of heightened volatility and emphasizes the importance of monitoring for a potential breakout above the $4.75 resistance or a corrective move should overbought pressures trigger profit-taking.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.