Injective made a strong comeback from a $5.2 slip. The altcoin successfully flipped $6 and jumped to $6.3, levels not seen since November 2025.
As of this writing, Injective traded at $6.1, up 14.4% on the daily charts. Over the same period, its market cap rose 12% to $628 million, a clear sign of steady capital inflow.
With the price pump, INJ made a clean jump above its short-term moving averages, the 21-day MA reflecting the upside strength.
What’s driving Injective’s price pump?
Injective [INJ] most likely pumped largely driven by increased speculative demand and short covering.
As the market suddenly reversed, over $441k worth of short positions were liquidated. The increase in short liquidations prompted some market players to cover their positions, while others opened new ones.
According to CoinGlass data, the altcoin’s Open Interest climbed 32.3% to $151 million, while Derivatives Volume rose 11% to $337 million.
With OI and volume rising in tandem, it showed increased market participation and capital inflows into derivatives. This indicated that new positions, both short and long, were opened.
Meanwhile, the Long/Short Ratio rose to 1.8, where longs accounted for 64.8% of the total positions compared to 35% shorts. With longs dominating, it suggested that market participants were mostly bullish and chose to chase the rally.
As a result, the capital flowing into these positions strengthened the upward momentum, leading to more gains.
Profit taking reaches a record high
As expected, with Injective hitting a 6-month high, investors who have been underwater rushed into the market and cashed out.
As a result, the Spot Netflow turned positive after dropping into the negative zone the previous day. At press time, Netflow was $3.2 million, hitting levels not seen since August 2025, a massive jump from -$1.28 million recorded earlier.
A positive Netflow indicated that more INJ flowed into exchanges than out of them. Thus, sellers dominated the spot market.
Historically, increased supply on exchanges has reduced scarcity, thus weakening the market structure. Often, such a setup has preceded market pullbacks.
Can the upside momentum hold?
Injective saw increased demand as market participants turned bullish, especially in derivatives. As a result, the upside momentum strengthened.
In fact, the altcoins’ Relative Strength Index (RSI) made a bullish crossover and jumped to 73, while the signal dropped to 66.
At these levels, RSI indicated that buyers have strong control of the market, but with the signal line at 66, the margin is minimal. In essence, while buyers still control, their dominance is not a strong warning of market pressure risks.
Therefore, 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.
Final Summary
- INJ rallied 14%, successfully flipped $6, and reached a 6-month high of $6.3.
- Injective rallied, mainly driven by renewed speculative demand, but profit-taking risks led to another drop towards $5.4.
