INJ rallies 14% to $6.3 as shorts liquidate; RSI nears overbought
Injective (INJ) surged about 14% to a 6-month high near $6.3 after reclaiming the $6 level. INJ was trading around $6.1 (+14% daily) as market cap rose roughly 12% to about $628M.
The rally was supported by short covering and renewed speculative demand, with over 441k in short positions liquidated. Derivatives activity also picked up: open interest jumped (32.3% to ~$151M) and derivatives volume rose to ~$337M. The Long/Short Ratio climbed to 1.8, with longs at ~64.8%, indicating traders are broadly bullish and adding exposure.
Spot flows improved as well: spot netflow turned positive to about $3.2M, suggesting spot selling is not dominating. However, with INJ printing fresh highs, profit-taking risk remains elevated. Technicals show RSI at 73 (bullish, but close to overbought), raising the odds of consolidation.
Key levels for INJ: near-term support around $5.4 (earlier support near $4.5 was defended) and upside resistance toward $7 if momentum holds. Traders should watch for whether INJ can sustain demand while funding/positioning stays constructive.
Bullish
INJ’s jump is being reinforced by short covering and improving positioning. Shorts were liquidated in size, open interest and derivatives volume rose, and the Long/Short Ratio moved above 1 with longs dominating—signals that demand is actively stepping in rather than price rising on thin liquidity. Spot netflow also turned positive, reducing the chance that the move is purely distribution.
Still, RSI is elevated (73) and the earlier article noted consolidation/pullback risk, so the bullish view is conditional. If INJ can hold key support (~$5.4) and sustain derivatives participation, a continuation toward ~$7 is plausible. If spot profit-taking accelerates and RSI pushes into stronger “overbought” territory without follow-through, a near-term consolidation or dip is likely, even though the broader tone remains positive for the coin.