Market Overview: Injective/Tether (INJUSDT) on 2026-01-06

Summary
• Price surged from $5.18 to $5.908 before retracting to $5.491, forming a bullish-engulfing pattern at the peak.
• Volatility spiked sharply during the rally, with Bollinger Bands expanding significantly.
• RSI reached overbought levels near the peak and is now in neutral territory, suggesting potential consolidation.
• Volume surged during the bullish breakout and again during the sharp pullback, supporting key price levels.
• Fibonacci retracement levels at 5.64–5.73 and 5.49–5.59 appear to be acting as key support/resistance.

Injective/Tether (INJUSDT) opened at $5.18 on 2026-01-05 at 12:00 ET, surged to a high of $5.908, dropped to a low of $5.491, and closed at $5.491 on 2026-01-06 at 12:00 ET. Total volume reached 973,247.6 units, with a notional turnover of approximately $5.697 million.

Structure & Formations

The price action displayed a strong bullish engulfing pattern at $5.81–$5.839, followed by a sharp correction into a bearish reversal pattern at $5.693–$5.694. A notable doji formed near $5.647, indicating indecision during the pullback.

Moving Averages

On the 5-minute chart, the price surged well above its 20- and 50-period moving averages, confirming a short-term bullish bias. On the daily chart, the 50- and 100-period lines are aligned, with the price hovering slightly above the 200-period line.

MACD & RSI

The MACD line surged during the rally, with a bearish crossover occurring during the pullback, aligning with price weakness. The RSI climbed to 85 during the peak, suggesting overbought conditions, and has since fallen back into neutral territory.

Bollinger Bands

Volatility surged as the Bollinger Bands widened during the breakout to $5.908. The price has since retracted toward the upper and then the midline, indicating a potential consolidation phase.

Volume & Turnover

Volume spiked sharply during both the breakout and pullback phases, confirming key levels. Turnover was highest during the $5.81–$5.908 move, with a smaller but meaningful spike observed during the retest of $5.694.

Fibonacci Retracements

The 61.8% retracement level from the peak to the first pullback sits at $5.64–5.73, and the 38.2% level at $5.49–5.59 appears to be holding as immediate support.

The market appears to be entering a consolidation phase, with strong technical levels forming around $5.64–5.73 and $5.49–5.59. Traders may watch for a breakout from this range in the next 24 hours. However, the recent divergence in momentum indicators suggests caution ahead of any directional move.