Injective/Tether (INJUSDT) Market Overview: Volatile 24-Hour Move with Key Rebound

• Price declined sharply from $7.81 to $7.51 before a recovery toward $7.85 by the close.
• Key support held around $7.60–7.65, with a bullish rebound observed during the late-night/early-morning hours.
• High volatility noted between 17:15–19:45 ET, with volume spiking above 21k–24k INJ during the selloff.
• RSI entered oversold territory around $7.50–7.55, indicating potential for a short-term bounce.
• Bollinger Bands showed a tightening phase during consolidation, then expanded during the late-night rebound.

Injective/Tether (INJUSDT) opened at $7.79 on 2025-10-30 at 12:00 ET, reached a high of $7.85, and a low of $7.50 before closing at $7.85 by 12:00 ET on 2025-10-31. Total volume over the 24-hour period was 563,801.89 INJ, with notional turnover reaching $4,400,000 (calculated from closing prices). The pair experienced a sharp sell-off during mid to late hours, followed by a robust recovery into the overnight and early morning sessions.

The price structure over the past 24 hours displayed a strong bearish breakdown from initial support levels around $7.70–7.75, followed by a rapid move to $7.51, forming a short-term bear trap. However, between 00:00 and 02:00 ET on 2025-10-31, a series of bullish candlesticks emerged, including a strong green body on the 15-minute chart after hitting a near-term low. This suggests key psychological support was reached, triggering a reversal in sentiment.

On the 15-minute chart, the 20-period and 50-period moving averages both trended lower during the selloff but began to align with the rising price action after 01:00 ET, indicating a possible shift in short-term momentum. MACD crossed above the signal line during the rebound phase, suggesting a recovery in bullish momentum. RSI hit an oversold level of around 27 during the lowest point of the dip, offering a strong indicator that a bounce could occur if the trend held.

Bollinger Bands demonstrated a clear contraction during the consolidation phase between $7.60–7.70, followed by a sharp expansion during the rebound, suggesting a breakout from a volatility contraction. Price action also showed Fibonacci retracement levels at 61.8% (around $7.64) and 78.6% (around $7.75) being respected and retested, with the latter serving as a key pivot for the eventual upward move.

A forward-looking view suggests that INJUSDT may continue to consolidate above $7.65 in the next 24 hours, with the potential for a retest of the $7.81–7.83 resistance level. However, risks remain if the pair fails to hold above $7.60, potentially leading to renewed bearish pressure toward $7.50–7.55. Investors should monitor volume and RSI levels for signs of exhaustion or continuation in either direction.

Backtest Hypothesis
Given the observed volatility and potential for candlestick patterns to form, a viable strategy to test would involve identifying the exact dates where a Bullish Harami pattern occurred on Injective/Tether (INJUSDT) since 2022. This pattern is particularly relevant in a volatile environment, as it can signal a potential reversal in bearish momentum. If such data is available, a backtest holding the position for three days after the pattern’s confirmation could provide insights into its profitability. If not, a simpler proxy—such as buying when the current day’s close is above the previous day’s low and holding for three days—could serve as an initial alternative. This approach would allow for a preliminary assessment of potential short-term trading opportunities in this pair.