Injective (INJ) climbed 3.86% in the past day to $5.38, but the rally is showing cracks beneath the surface. The token touched the upper Bollinger band with zero momentum, while open interest has been dropping even as the price moves higher — a classic bearish divergence that traders are watching closely.
Bollinger Band Touch and Zero Momentum
INJ hit the upper bound of the Bollinger band, a technical indicator that measures volatility. Normally a price reaching that band signals strong upward momentum, but the zero-momentum reading suggests the move is not being driven by fresh buying pressure. Instead, it could be a short-term squeeze or a final push before a reversal.
Open Interest Drops as Price Rises
Open interest — the total number of outstanding futures contracts — has been declining while the spot price gains. That divergence often means new money is not entering the market, and the rally is built on thinning liquidity. If the trend continues, the price could snap back quickly.
Key Levels to Watch
The immediate resistance sits at $5.52. A break above that level could open the door to $5.67, the next target for bulls. But if the rally fails to hold, INJ could flush down to $5.02, a level that has acted as support in recent weeks. Traders are eyeing whether the price can sustain above the Bollinger band or if the bearish signals will prevail.
