jective Hits Oversold Levels Despite Aggressive Q1
Injective (INJ) has declined to extremely oversold levels, even following a quarter with high-profile projects. Even while there have been impressive product releases and high institutional demand, bearishness in the market has drawn the price below by over 15% in the last 24 hours.
EVM Support and Innovative Indices
On January 29, Injective Labs announced it would be adding native Ethereum Virtual Machine (EVM) support to its Layer 1 blockchain. This effort will be done in an attempt to make Ethereum-based decentralized applications more compatible and grow developer adoption.
The very next day, Injective introduced an AI Index — a novel on-chain asset that blends top-performing AI-related cryptocurrencies and tech stocks. Tokens such as FET and TAO were combined with traditional equities such as Nvidia (NVDA) and Palantir (PLTR), reflecting Injective’s move to combine DeFi with real assets.
In February, the group launched a TradFi Stocks Index, giving on-chain exposure to some of the globe’s largest companies, including Amazon, Apple, Microsoft, and Goldman Sachs. These indices reflect Injective’s growing move into synthetic asset offerings.
Institutional Validators Join the Network
Institutional trust in Injective also grew this quarter. On February 27, Deutsche Telekom joined as a network validator. Weeks later, Google Cloud joined as another validator — a huge testament to the infrastructure and long-term vision of Injective.
Bearish Trends Override Fundamentals
Despite the tempestuous action, Injective’s price has struggled. The fall began at the end of December, when the 20-day Exponential Moving Average (EMA) fell below the 50-day Simple Moving Average (SMA) — a bearish technical crossover.
A minor price increase in January did not gain momentum. The sell-off has since become more aggressive, with the eventual failure of a significant support range of $8.10 to $8.50. INJ is currently at $6.93, and the Relative Strength Index (RSI) stands at 26.41 — a very strong signal of oversold levels.
The MACD remains negative, but it’s beginning to show convergence, which could indicate waning bearish momentum.
Outlook: Bounce or Breakdown?
While short-term relief cannot be excluded with oversold readings, the broader trend remains down. The next significant support is at approximately $5.50, challenged recently in May–June 2023. Without a change in sentiment, INJ could be headed towards yet another leg lower.
Investors will be watching closely to see if and how Injective’s strong Q1 fundamentals can finally reverse the trend.
