Injective (INJ) at $3: Reversal Setup or Final Breakdown?

Injective (INJ) trades near $3 after 76% yearly drop, testing key support as RSI signals oversold conditions.

Injective (INJ) is trading near $3.27 on the weekly chart, following an extended decline from its 2024 highs above $40.

Market data shows the asset remains under pressure, while technical indicators suggest oversold conditions.

Weekly Price Structure Remains Bearish

The weekly INJ/USDT chart shows a clear pattern of lower highs and lower lows since early 2024.

A major top formed above $40, and price has trended downward since then. The broader structure remains bearish.

Price is now testing the $3.00 level, which serves as a psychological and recent reaction zone.

Below that, support levels are seen near $2.50 and $2.00. These areas previously acted as consolidation bases.

On the upside, resistance is visible near $5.00, followed by $8.00 to $10.00. A weekly close above $5 would mark the first structural improvement. Until then, the trend remains intact.

RSI and MACD Show Oversold Conditions

The weekly Relative Strength Index is near 29 to 32. This places INJ in oversold territory. However, during strong downtrends, RSI can remain low for extended periods.

A move above 40 on the weekly RSI would signal improving momentum. At present, no confirmed bullish divergence is visible. Price continues to respect the broader downward structure.

INJ tests critical $3 support amid persistent bearish momentum. Source: TradingView

The MACD indicator remains below the zero line. The histogram shows weakening bearish momentum, but no bullish crossover has formed.

This suggests downside pressure may be slowing, though confirmation is absent.

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Volume, Performance Metrics and DeFi Context

Trading volume has declined during the downtrend. There is no visible accumulation spike on the weekly chart.

A sustained reversal would require a strong green candle with higher volume.

Performance data shows short-term gains but longer-term weakness. INJ is up 4.30% over 24 hours and 6.70% over seven days.

However, it remains down 33.77% over 30 days and 76.94% over one year.

INJ shows mixed timeframes with short-term gains but deep longer-term drawdowns – Source: Coinglass data.

INJ shows mixed timeframes with short-term gains but deep longer-term drawdowns — Source: Coinglass data.

Total Value Locked across DeFi stands near $94.3 billion, down 1.79% in 24 hours. This remains below the 2021 peak near $180 billion, yet above 2022 lows.

While DeFi capital has stabilized, INJ price action has not confirmed accumulation.

Injective now trades at a critical level near $3.00. A sustained defense could lead to range formation between $3 and $5.

A breakdown below support may expose lower historical zones near $2.50 and $2.00.