INJUSDT Market Overview: Volatility Unleashed After Consolidation

• INJUSDT traded within a tightening range ahead of a sharp 12.5% rally above $8.00.
• Volatility expanded after 20:30 ET as volume surged to 133,814.6 with a bullish engulfing pattern.
• RSI and momentum diverged at the upper Bollinger Band, suggesting potential overbought conditions.
• A key 7.93–7.96 support cluster held overnight but faces retesting after the break above 8.00.

Injective/Tether (INJUSDT) opened at $7.73 on 2025-11-01 at 12:00 ET, reaching a low of $7.65 before closing at $7.98 at 12:00 ET on 2025-11-02. The 24-hour range spanned $7.61–$8.10, with a total volume of 581,292.76 and a notional turnover of $4.62 million. A late-session breakout above $8.00 signaled renewed bullish momentum.

Structure & Formations

The 15-minute chart reveals a tight consolidation phase between 7.80 and 7.95 from 16:00 to 20:30 ET, followed by a sharp breakout above 8.00. A bullish engulfing pattern formed between 20:30 and 20:45 ET as price surged from $7.84 to $8.09. Key support levels include the 7.93–7.96 cluster and 7.85, while resistance is now at 8.07–8.09.

Moving Averages

On the 15-minute chart, the 20-period MA crossed above the 50-period MA around 20:00 ET, confirming a short-term bullish crossover. On the daily chart, the 50-period MA is at $7.87, with the 200-period MA at $7.76. The 50/200 MA crossover remains untriggered, but the 50 MA is gaining ground on the 200 MA.

MACD & RSI

The 15-minute MACD turned positive after 20:00 ET, with a strong bullish crossover. The RSI spiked to 62–68 during the breakout, indicating overbought conditions. A divergence between RSI and price emerged as volume surged without a corresponding RSI push beyond prior highs. This suggests a potential pullback could be on the horizon.

Bollinger Bands

Volatility was narrow during the consolidation phase, with price fluctuating within 7.80–7.95. At the breakout, price jumped above the upper Bollinger Band at $8.09 and remained outside it, signaling high volatility. The next 24 hours will likely test whether this new range can be sustained or if a reversion to the band is imminent.

Volume & Turnover

Trading volume surged dramatically after 20:30 ET, peaking at 133,814.6 during the breakout. This coincided with a sharp rise in price, confirming the move. Notional turnover also spiked as price broke above 8.00, validating the move. A divergence may emerge if volume declines but price remains elevated, signaling speculative pressure.

Fibonacci Retracements

Applying Fibonacci retracement to the 15-minute breakout from $7.84 to $8.09, key levels include 61.8% at $7.98 and 78.6% at $8.06. These levels could act as short-term resistance. On the daily chart, a 38.2% retracement from the 2025 high is at $8.17, while 61.8% is at $8.35, both representing potential longer-term targets.

Backtest Hypothesis

To validate the recent breakout and assess the sustainability of the bullish move, a backtest could be conducted using RSI-based entries. Given the current overbought conditions and the divergence observed, a strategy using RSI below 30 as a buy signal may not be appropriate. Instead, a modified strategy could test for RSI above 70 as a sell trigger or use a 50/200 MA crossover as a position entry. This would align with the observed 15-minute MA crossover and the bullish engulfing pattern. A 5-day hold period could be tested using a broad-market ETF like SPY as a proxy, if needed.