Injective’s bias remains bearish despite 8% weekend rally

During the crash on the 10th of October, 2025, Injective [$INJ] registered a low of $2.79 on Binance, falling 77.37% from $12.11 within a single day. The price action since then has been steadily bearish.

The altcoin spent the majority of the past two months at these lows but did not deviate substantially from the $2.79 low.

Over the past week, the token has rallied 9% and 7.5% within just the past 24 hours. Open Interest surged 10.2% in a day, signaling increased capital flow in derivative markets following the mainnet performance upgrade, IIP-632, announced last week.

The short-term momentum might be too little to wrestle against the long-term downtrend.

Injective needs to rally more than 50%

Source: $INJ/$USDT on TradingView

The weekly chart did not make for cheerful reading for Injective bulls. After revisiting the lows from the October crash, the altcoin has bounced 38% in a month.

Yet, the technical indicators showed momentum remained bearish. The Aroon indicator barely saw a peep from the Aroon Up, showing the altcoin was a long way from challenging local highs or setting new ones.

The CMF was at -0.21. The heavy capital outflows on the higher timeframes helped explain the Injective token’s weakness.

The weekly swing structure was bearish, and the internal high (green) at $5.9 needs to be breached to signal a relief rally was underway. $INJ needs to rally 53% from current market prices to achieve this.

As things stand, the $INJ bounce is too weak and isolated to buy.

Traders shouldn’t FOMO into this bounce

Source: $INJ/$USDT on TradingView

The swing structure on the 1-day chart, which was the weekly timeframe’s internal structure in this case, remained bearish. As noted earlier, a breakout past $5.9 is needed to flip the bias.

In this bullish break scenario, $INJ has a chance of rallying as high as the $11.29-$13.60 golden pocket before its next retreat.

Until $5.9 is breached, traders should maintain a bearish outlook. Therefore, if the bounce continues and reaches $4.66-$5.21, traders should look to sell.

Final Summary

The current Injective rally was just a bounce that should be used for selling.

The price has revisited the lows from the October 2025 crash, but based on the evidence at hand, more losses appear likely in the coming months.