Injective mainnet disruption leads to restricted access: INJ remains under pressure

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Injective drops 10.18% to $7.38 today

Highlights

Injective's mainnet suffered a block production outage lasting over four hours, causing major exchanges to suspend INJ deposits and withdrawals.
Injective executed a $57.5 million token buyback, permanently removing more than 7.27 million INJ from circulation.
INJ remains under short-term downside pressure with a projected two-day trading range of $7.13 to $7.73 and elevated probability of further decline.

Market sentiment sours as outage prompts exchange suspensions

Injective's mainnet experienced an outage on the evening of November 9, with block production halted for over four hours before resuming operations at 02:29 on November 10. The interruption led major exchanges, including Upbit, Coinone, and Kraken, to suspend INJ deposits and withdrawals, restricting user access and increasing short-term market risk. While Injective also completed a $57.5 million token buyback, permanently removing over 7.27 million INJ from supply as part of its deflationary plan, recent operational disruptions have weighed on market sentiment.

Technical bias remains negative amid oversold signals and resistance

On the technical side, INJ/USD is trading below the MA-20 ($7.77) and MA-50 ($7.95) on the h1 timeframe, while holding above the long-term MA-200 at $5.76. Immediate resistance levels appear at the Ichimoku Kijun of $7.92, with primary support near $7.13. Momentum indicators such as MACD and ADX both print a sell bias, while the RSI is neutral. Stochastic RSI and CCI are in oversold territory, suggesting some selling exhaustion, but Bull/Bear Power remains negative, reflecting persistent intraday seller dominance.

Volatile consolidation expected as downside risk dominates

In the short term, INJ is likely to remain in a volatile consolidation phase between $7.13 and $7.73, forming a typical volatility band relative to current levels. With the probability of an upside rebound considered very low and downside risk elevated, price action could test key support at $7.13. Any move above resistance at $7.92 might indicate a more decisive bullish reversal, while a breach below support could accelerate losses to the downside.

Viktoras Karapetjanc, analyst at Traders Union, sees Injective's mainnet outage as a temporary sentiment setback amid otherwise robust fundamentals. He believes recent operational risks have dampened short-term confidence, but the large token buyback and deflationary approach build a positive macro foundation. Karapetjanc expects higher volatility in the near term, yet sees downside risk as balanced by long-term supply-side tailwinds. "If INJ can maintain support near $7.13 while operational reliability improves, I expect investor confidence and upward momentum to gradually return."

Earlier, analysts noted that INJ's price action was buoyed by ETF flows and retention of key support, highlighting potential for further upside within a consolidating market. The latest developments—specifically the mainnet outage and resulting technical breakdown—add a risk dimension, making $7.13 a crucial level for downside protection as volatility remains elevated.

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.