- INJ reversed from $6.00 and now tests $5.20–$5.30, making this zone central to short-term direction.
- A confirmed break below $5.20–$5.30 could validate the inverse V pattern and expose the projected $4.00 target.
- Holding support could keep buyers active, while resistance near $5.55–$5.58 continues limiting immediate upside attempts.
INJ outlook remains centered on the $5.20–$5.30 neckline after a sharp reversal interrupted the token’s recent recovery toward $6.00.
Neckline Becomes the Main Technical Level
Alpha Crypto Signal reported that INJ is forming a potential inverse V pattern. The analyst identified the neckline as the key level to monitor. A short position would require confirmation beneath that neckline.
The setup developed after the price recovered strongly from approximately $4.00. Buyers gradually gained control as several resistance areas were cleared. Momentum increased around August 19 alongside stronger trading volume.
The rally continued through August 24 and 25 toward the $6.00 region. However, buying pressure weakened after the price reached the local peak. A sharp reversal then produced a pronounced upper wick near resistance.
Several bearish candles followed, sending prices toward the $5.20 area. That movement created the potential inverse V structure on the chart. The proposed formation remains unconfirmed without a decisive neckline break.
Price Recovery Faces Resistance
The price as of writing stands at around $5.52 after a volatile trading session. Earlier selling pressure pushed the token toward approximately $5.28. Buyers then entered and prevented further movement toward lower levels.
The recovery initially moved through the $5.40 region at a measured pace. Buying momentum later strengthened and carried a price above $5.50. Price eventually reached approximately $5.58 before another retracement developed.
The subsequent decline returned price toward approximately $5.40 during trading. Sellers remained active around the upper portion of the recent range. Nevertheless, buyers again lifted price above the $5.50 area.
The $5.50 level now provides an important short-term reference point. Holding above it could support another test of $5.55–$5.58. A rejection below it could expose the market to another $5.40 test.
Breakdown Confirmation Remains Necessary
Trading volume stands near $83.02 million across the reported market period. Displayed 24-hour volume is down 11.97% despite elevated activity. Market capitalization is approximately $552.08 million, with supply near 99.97 million.
Volume expanded during the earlier upward acceleration toward the recent peak. Activity increased again as the sharp reversal developed afterward. The larger swings therefore attracted stronger participation than earlier consolidation.
Shorter moving averages remain relevant after the strong upward movement. The latest decline has brought price closer to those dynamic reference levels. A broader moving average remains positioned beneath the current market.
The projected bearish trendline points toward the $4.00 region after neckline failure. However, that path remains conditional without confirmed downside continuation. A temporary wick below support would not establish equivalent confirmation.
The structure therefore remains between a pullback and confirmed bearish reversal. Buyers need to defend $5.20–$5.30 and establish renewed stability. Sellers require a confirmed close below that region before acting.