Why did $INJ slip so badly this week after being the best-performing L1?

#Injective is trading at $4.43 after a week that saw it swing from best-performing Layer 1 to one of the sharpest pullbacks in the sector. The chart is now showing the first signs of stabilizing, but it hasn’t cleared out the sellers yet; 4H MACD is still negative, and RSI just moved a bit out of the oversold territory.

The 4H chart setup tells a clean story. $INJ spent roughly six weeks consolidating in a $4.79–$5.20 range through late June and July, then broke down hard in early August, losing the $4.79 floor after rejecting a top near $5.48; $INJ fell all the way to $4.383 before it found a floor for reversal.

$INJ’s performance this week is quite surprising because Injective had a good week; it generated $133.1K in protocol revenue over the past seven days, placing it among the more consistently fee-generating Layer 1s in the market, and that revenue feeds directly into the network's Community BuyBack program, which uses on-chain fees to purchase and permanently burn INJ from circulating supply.

Well, the bull case here is straightforward. Since the RSI has already cleared its moving average out of oversold territory and the MACD is compressing into a bullish crossover, $INJ’s buyback burns, revenue growth, or the regulatory build-out can act as catalysts to push the token back to reclaim $4.60 and then test the $4.79 zone. A close above $4.79 would put $5.0 back into view, with hopes for a new high above $5.5.

The bear case is that this is still a bounce inside a downtrend until proven otherwise; if $INJ fails to hold $4.38–$4.40, the next real support it has is around $4.10, and that level hasn't been tested since spring.

What’s your bet on $INJ? A push back to the $5s, or a further breakdown?