The injective coin price is trading flat to slightly lower today, as traders locked in gains following a major governance vote. INJ was trading around $4.80, down roughly 6.6% over the past week, with a sharp intraday drop following the proposal going live.
Price action ranged from recent highs near $5.75 to lows below $4.60, signaling a decisive loss of short-term momentum. Trading volume fell more than 22% over 24 hours to about $48 million, pointing to fading follow-through after the initial reaction.
The immediate driver was governance rather than market structure. A widely anticipated tokenomics change passed, but Injective price responded with a familiar sell-the-news move.
Injective Community Approves Supply Squeeze
Injective’s protocol community approved IIP-617 on Jan. 19 with 99.89% support, ushering in a new phase for INJ’s supply mechanics. The proposal cuts new token issuance and accelerates the network’s buyback-and-burn program, which uses protocol revenue to permanently remove Injective coins from circulation. This update has already burned about 6.85 million INJ.
The shift reduces inflation from roughly 8.88% toward lower levels over time, tightening long-term supply. That structural change was well telegraphed. INJ had already risen about 12% in the week leading up to the vote, setting the stage for profit-taking once the proposal went live. Selling pressure surfaced quickly as short-term holders exited, despite broad community support and optimistic framing on X.
Fundamentals remain mixed. Injective’s total value locked stands near $18.67 million, still around 70% below 2024 peaks above $66 million, according to DefiLlama. Burns only outpace minting if network usage grows, and current fee activity has yet to show that acceleration.
Institutional engagement continues, with ETF filings from Cboe and Canary Capital and new validators including Deutsche Telekom MMS and Korea University, but those developments have not translated into near-term demand for the token.
INJ Price Tests Lows as Technical Momentum Fades
The technical structure for INJ remains bearish across multiple timeframes. According to analyst Quantum, the token is currently navigating a “running contracting triangle” on the weekly chart.
While the analyst suggests a long-term target of $100 based on a 4.236 Fibonacci extension and a 5-year trendline, the immediate price action is focused on the “D-wave” hitting lower trendline support. This perspective is echoed by Web3 Princ, who notes that while Injective is the second chain by developer commits, the building phase has yet to translate into price appreciation.
Short-term indicators align with a “Strong Sell” outlook. Moving averages are across-the-board bearish, with the 10-day EMA at $5.60 and the 50-day SMA at $10.22, both well above current price levels. Oscillators remain mostly neutral, though the MACD Level (12, 26) at -2.098 confirms negative momentum. Relative Strength Index (RSI) at 33.49 suggests the asset is approaching oversold territory but has not yet triggered a reversal signal.
In the near term, key support for the Injective coin rests near the recent lows of $4.50, while the $5.10–$5.25 range has flipped from support to immediate resistance.
READ MORE: Cardano Price Targets 250% Surge as Key Catalysts Align
