Injective [INJ] extended a bearish move after an aggressive rejection at flag resistance, trading below its 20-day exponential moving average at $7.779 at press time after hours of intense selling.
The rejection weakened the token’s recovery attempt, and the 20-day EMA now presents another barrier for buyers. Failure to reclaim the moving average could keep the short-term trend tilted toward the bears.
The last line of defense lies around the $7 demand zone. If selling pressure persists, sellers could push price action toward that area, where buyers could attempt to halt the decline. A sustained move back above the 20-day EMA would weaken the bearish setup and give buyers a chance to regain control.
Open interest drops as profitable supply flattens
Injective’s Open Interest dropped sharply to $79 million, indicating a reduction in outstanding derivative positions. This suggests traders are closing positions or reducing leverage as uncertainty grows across altcoins.
The decline does not necessarily confirm that sellers are gaining control, since falling Open Interest can accompany both long and short position closures.
Supply in profit flattened around $75 million after months of aggressive pumping. This indicates little recent change in the reported value of profitable supply, rather than a clear increase in holders’ unrealized gains.
What to watch
INJ remains below its 20-day EMA, with both technicals and on-chain indicators sparking bearish signals. Investors and traders are targeting the demand zone as a strategic point for further accumulations.
A sustained reclaim of the 20-day EMA would weaken the bearish setup, while continued selling pressure would keep the $7 demand zone in focus.
