Injective (INJ) Tests $12.20 Support Amid Potential 105% Rally to $25

Injective (INJ) has seen a nearly 20% decline from its July 28 peak, currently testing a key support zone around $12.20, which aligns with its 50-day simple moving average [1]. The price dipped below the 20-day exponential moving average and has since moved toward $12.80, raising concerns among traders about further downward momentum. A failure to hold above $12.20 could push the token lower toward $11.20, the lower boundary of the ascending triangle pattern [1].

On the technical side, analysts are closely monitoring the $15.50 to $16.00 range as a potential trigger for a breakout rally. A decisive close above this level could confirm the completion of the triangle pattern, potentially sending INJ toward a $25 price target—a 105% increase from current levels if momentum builds [1]. This projected move is based on standard technical analysis of the chart pattern and not on analyst forecasts.

Despite the recent pullback, several positive developments have kept market interest alive. Injective recently launched its internal EVM testnet, a step expected to enhance its ecosystem growth and developer activity. Additionally, the tokenization of a $1 billion Ethereum treasury by SharpLink Gaming on the Injective blockchain has demonstrated the platform's expanding capabilities. Meanwhile, a CBOE filing for a staked INJ ETF by Canary Capital has attracted broader attention, highlighting growing institutional interest [1].

At current price levels, the focus remains on whether INJ can stabilize around the $12.10 to $12.20 range and generate enough buying pressure to retest upper resistance levels. As long as volume picks up and the token remains within this critical support band, the bullish setup for a potential rally remains intact. However, a breakdown below $11.20 would invalidate the pattern and shift attention to the next key level at $10 [1].

[1] Source: Injective Price Nears $12.20 Support as Traders Watch for Breakout Toward $25 (https://coinmarketcap.com/community/articles/688d721ed8f4da6ca8c0c9fe/)