Despite a range of significant initiatives launched during the first quarter of this year, Injective has experienced a continued decline in its price, now deep in the oversold territory. While this may hint at a potential short-term recovery, the overall market sentiment remains negative.
This year, Injective (INJ) has rolled out a variety of important announcements and major initiatives.
On January 29, Injective Labs revealed plans to introduce native Ethereum Virtual Machine support on its Layer 1 blockchain. The following day, the project debuted an AI Index that consolidates the ten largest AI tokens alongside traditional stocks, including TAO, FET, NVDA, and PLTR, into a single on-chain asset.
By mid-February, it also launched a TradFi Stocks index, which monitors some of the biggest publicly traded companies globally, including Amazon, Apple, Microsoft, and Goldman Sachs.
On February 27, Injective welcomed Deutsche Telekom, the German telecom giant, as a validator. Google subsequently joined as a validator in late March.
Despite these advancements, the price of INJ has been on a notable downward trajectory, which accelerated in late December of the previous year when the 20-day Exponential Moving Average dipped below the 50-day Simple Moving Average. A brief bullish breakout attempt occurred in early to mid-January, as the price briefly exceeded the 20 EMA and approached the 50 SMA.
Most recently, the price of INJ fell below the $8.10–$8.50 support range, which had been stable for roughly a month. It is currently priced at $6.93, reflecting a 15% decline in the past 24 hours.
The Relative Strength Index has also dropped significantly into the extreme oversold zone, currently sitting at 26.41.
Additionally, the Moving Average Convergence/Divergence indicator is exhibiting a bearish outlook, with the MACD line positioned below the signal line and red histogram bars indicating a negative momentum. However, the lines are starting to converge, hinting at a potential weakening of the bearish trend.
Even though the oversold RSI and MACD could indicate the chance of short-term relief bounces, the wider market structure remains distinctly bearish. With the breach of the $8.10–$8.50 support zone, the next critical support level can be found around the $5.50 mark—a level that was tested during May-June of 2023. Should the bearish momentum persist, this area could serve as the next line of defense.