- Injective rebounded 13.68% after buyers defended the crucial $4.19 support level.
- Top traders remain heavily short despite improving price momentum and stronger buyer interest.
- A breakout above $5 could open the path toward $5.68 and potentially $7.
Injective Protocol surprised traders with a sharp recovery after defending a key support zone near $4.19. The token climbed almost 14% within a day and returned close to the $5 mark. Such a move renewed optimism after several sessions of weakness. However, not everyone believes the rally will continue. Market data shows experienced traders remain cautious, leaving the next move uncertain despite improving price action.
Bears Stay Active Despite the Recovery
INJ bounced strongly from recent lows and reached around $4.89. Market value also increased as buyers returned to the market. Trading volume stayed healthy, although daily activity slipped slightly. Even with that decline, the rebound attracted fresh attention from traders looking for a possible trend reversal. However, Binance positioning tells a different story. Most top traders continue betting against the token.
Short accounts represent nearly 59% of positions, while long accounts remain below 42%. Such positioning suggests many experienced traders expect the recovery to lose momentum. Heavy short exposure could also create another outcome. If buyers push prices above nearby resistance, short sellers may rush to close positions. That buying pressure could help extend the rally toward higher resistance levels.Derivative data also presents mixed signals.
Futures trading activity increased sharply during the rebound. Higher participation often reflects stronger interest across both sides of the market. However, Futures Taker CVD still favors sellers. Market sell orders continue outweighing aggressive buying activity despite the recent bounce. Such conditions leave buyers with more work ahead. Spot demand must remain strong before bulls can fully regain market control.
Can Buyers Push INJ Toward $7?
Technical indicators show improving momentum, although confirmation remains limited. Buyers successfully defended support around $4.19 before driving the price higher. Current trading now centers around the important $5 resistance level. The Relative Strength Index has recovered to 46.67 after nearing oversold territory. Such improvement shows selling pressure has weakened. However, RSI still remains below bullish levels, leaving room for both outcomes.
A successful move above $5 could open the path toward the next resistance near $5.68. Breaking that level would place the $7 target back into focus. Strong buying demand will remain essential for that scenario. Failure to reclaim $5 could produce another test of the $4.19 support zone. Buyers must continue defending that area to preserve the current recovery.
Injective has delivered an encouraging rebound after recent weakness. Even so, cautious trader positioning and seller-dominated order flow continue limiting bullish confidence. A clean break above $5 would strengthen the outlook considerably. Until then, traders will closely watch whether buyers can maintain enough momentum to challenge the $7 level.
