Injective Surges 15% on EVM Testnet Launch, Bullish Indicators Suggest Trend Reversal

Injective ($INJ), a prominent decentralized finance (DeFi) blockchain, is generating significant excitement in the cryptocurrency market as it exhibits signs of a potential major upward move. A recent analysis by CryptoBusy on X highlights a compelling bullish divergence on both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators, suggesting a trend reversal may be on the horizon.

The charts, shared on July 20, 2025, reveal higher lows in momentum since mid-2022, despite lower price lows extending into 2025. This divergence, a phenomenon backed by a 2016 Journal of Financial Economics study linking it to 15-20% price reversals in volatile markets, indicates that selling pressure is waning. The MACD’s upward-curving histogram and a potential bullish cross further reinforce this optimistic outlook, a signal traders often associate with significant trend shifts.

Injective’s fundamentals are equally promising. The project recently surged 15% following the launch of its EVM testnet and the formation of the Injective Council, featuring heavyweights like Google Cloud and Deutsche Telekom, as reported on July 13, 2025. With over 1 billion transactions processed and a ranking on CoinMarketCap, Injective’s ecosystem is gaining traction. The $150 million ecosystem initiative, backed by Pantera Capital and Jump Crypto, underscores its commitment to scalable DeFi solutions.

However, caution is warranted. The RSI approaching 80 suggests overbought conditions, hinting at a possible short-term correction, a concern echoed amid rising market euphoria. The current price of $13.48 reflects both opportunity and volatility.

For investors, holding above $13 could target upside levels, but shakeouts may catch late entrants off-guard. As Injective’s narrative gains momentum, this technical setup—combined with robust fundamentals—positions it as a crypto to watch. Stay tuned for real-time updates as the market unfolds this potential breakout.