Despite a flurry of impressive developments throughout the first quarter of 2025, Injective (INJ) has seen its price spiral downward, slipping into deep oversold territory. While technical indicators hint at a potential short-term bounce, the broader market sentiment for the token remains distinctly bearish.
Strong Q1 Activity Falls Flat on Price Chart
In Q1, Injective Labs delivered several high-profile updates aimed at boosting the ecosystem’s appeal. On January 29, the project announced plans to integrate native Ethereum Virtual Machine (EVM) support on its Layer 1 blockchain an upgrade designed to attract developers and broaden the network’s utility.
Just a day later, on January 30, Injective launched an AI Index, packaging top-performing AI tokens like FET and TAO along with AI-driven equities such as NVIDIA (NVDA) and Palantir (PLTR) into a single on-chain asset.
Mid-February saw the release of the TradFi Stocks Index, tracking blue-chip giants like Amazon, Apple, Microsoft, and Goldman Sachs. This move further blurred the lines between traditional finance and decentralized assets within the Injective ecosystem.
On the institutional front, Deutsche Telekom joined the Injective validator set on February 27, followed by Google joining in late March. These additions were major validations of Injective’s credibility and scalability in the blockchain space.
Market Response: Bearish Despite Milestones
Despite all the momentum, INJ’s price has continued to bleed, falling over 15% in the past 24 hours alone and currently trading at $6.93. The token recently lost key support in the $8.10–$8.50 range—a level that had held for roughly a month.
Technical indicators paint a grim picture. The Relative Strength Index (RSI) has dropped to 26.41, deep in oversold territory, suggesting that the token may be primed for a short-term relief bounce. The Moving Average Convergence Divergence (MACD) also reflects ongoing bearish pressure, although the converging MACD and signal lines indicate that downward momentum may be losing steam.
The 20-day Exponential Moving Average (EMA) remains firmly below the 50-day Simple Moving Average (SMA)—a trend that began in late December 2024. Brief bullish attempts in January were unable to reclaim the 50 SMA, confirming the strength of the ongoing downtrend.
What’s Next for INJ?
Now that the $8.10–$8.50 support zone has been breached, all eyes are on the next key level at $5.50, last tested during May–June 2023. If bearish momentum persists, that zone could serve as the next critical support.
While Injective’s technological strides and institutional partnerships are undeniable, the current price action underscores a disconnect between project fundamentals and short-term market sentiment. For investors, it’s a waiting game between bearish technicals and the potential long-term payoff from Injective’s growing ecosystem.
