Injective Token Drops 5% as ETF Filing Triggers Surge and Profit-Taking

Injective’s token price experienced a notable 5% decline following a sharp rise triggered by the recent exchange-traded fund (ETF) filing for Canary Capital’s Staked Injective fund, as reported on July 29, 2025. The initial surge, which pushed the price above $16, was attributed to growing institutional interest in the asset, particularly as staked crypto ETFs for Injective, Ethereum, and Solana await regulatory approval. However, subsequent profit-taking activity led to a pullback, with the price retreating to $13.88, nearing key support levels near $13.20 [1]. Over $982,000 in long positions were liquidated within 24 hours, of which $895,000 came from bullish bets, signaling heightened market volatility [1]. Open interest in Injective derivatives contracts dropped 10.4% to $167 million, while derivatives trading volume fell 16% to $413 million, reflecting reduced market activity during the consolidation phase [1].

The ETF filing by Cboe for the Staked Injective ETF marks a pivotal development for the asset, aligning it with regulatory scrutiny faced by other staked crypto ETFs. Market analysts note that the filing could enhance liquidity and adoption for Injective, provided the product gains approval [1]. Despite short-term volatility, the token’s 4-hour price chart on TradingView suggests a bullish pennant pattern on higher time frames, which some analysts interpret as a sign of potential upward momentum [1]. Institutional investors have shown increased engagement, with the asset’s trajectory closely tied to broader regulatory and market dynamics in the crypto space [1].

The liquidation data underscores cautious trader sentiment, with the predominance of long position closures indicating a risk-averse posture. Reduced open interest and trading volume further highlight a temporary pullback phase, a common occurrence after abrupt price movements linked to news events [1]. Traders exiting positions amid the decline suggest anticipation of further downward or sideways price action in the near term.

While the ETF filing has bolstered institutional confidence, the market’s reaction underscores the challenges of navigating regulatory uncertainty. The outcome of pending approvals for staked crypto ETFs could significantly influence Injective’s long-term adoption and price stability. For now, the asset remains a focal point for observers tracking the intersection of institutional investment and regulatory developments in the crypto market [1].

Source: [1] Injective Price Sees Modest Decline After ETF Filing Spurs Initial Surge Amid Market Uncertainty July 29, 2025 (https://en.coinotag.com/injective-price-sees-modest-decline-after-etf-filing-spurs-initial-surge-amid-market-uncertainty/)