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Interoperable smart contracts layer 1 blockchain network Injective's (INJ) all-time high of $53 significantly pales in comparison to its current price action with the native token of the blockchain built for finance trading at $23, as of the time of writing. The choppy nature of the market in recent times has contributed to the massive selling pressure on INJ.
The most recent dip over the past 12 hours took INJ under the $23.91 support level. With multiple bearish candles in a row, traders can look to open new short positions with the goal of a sub-$20 price for INJ.
Price Rejection at $52 Unleashed Selling Wave
INJ’s strong bullish move from the $14 support level hit a major roadblock at the $52 resistance level in March. Since then, INJ has been under sustained selling pressure, breaking through several support levels.
This was illustrated by the Relative Strength Index’s (RSI) sub-neutral 50 movement, due to the significant selling pressure. This has kept INJ on a bearish trend both on the daily timeframe and lower timeframes.
Despite the sustenance of capital inflows, the current dip by the Chaikin Money Flow (CMF) into negative territory suggested that investors could be running out.
This exhaustion of potential buying pressure along with the bearish trend offers traders a new opportunity to ride the selling wave. Sellers can enter at the current market price of $23 with a profit target at $15–18 for 20–25% returns.
Alternatively, if buyers recover the $23.91 support level over the next 48 hours, this could invalidate the bearish trade setup. As such, traders should actively track market sentiment, as a shift in market dynamics could result in a swift price reversal.
Injective Ecosystem Keeps Expanding
Injective recently announced an Interoperable EVM (inEVM) infrastructure in collaboration with Arbitrum.
In a May 8 blog post, Injective described the integration as "meticulously engineered to meet the unique needs of Injective and the broader Ethereum ecosystem."
Working with Arbitrum brings a fully customized interoperability rollup across Cosmos and Ethereum, allowing for a broader developer toolkit for inEVM users.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
