Injective (INJ) is under pressure as technical analyst Ali Martinez flagged a confirmed breakout from an ascending triangle that may push the token down toward the $8 region.
His chart, shared with his followers on X, outlines a bearish path after losing its ascending trendline support.
At the time of writing, INJ trades at $12.77, down 2.57% over the past week with a market cap of $1.27 billion. Price action has struggled to hold above $13, with the latest 30-minute candlestick data showing persistent selling pressure. Momentum indicators reinforce the cautious outlook: RSI remains neutral around 53 while the MACD is flattening, suggesting limited short-term strength.
Technical Breakdown in Play
Martinez highlighted that the ascending triangle structure has failed, a development often followed by accelerated downside moves. His projection places the next key levels around $11 and $9.40, with a possible extension to $8 if selling intensifies.
Such a decline would mark a steep retracement from August highs near $16 and could realign Injective with broader altcoin weakness amid slowing liquidity inflows.
The Bullish Counterweight: Ethernia Upgrade
Despite the bearish technicals, Injective’s fundamentals are evolving rapidly. The network’s new Ethernia upgrade introduces Ethereum Virtual Machine (EVM) compatibility, allowing Solidity developers to deploy their apps on Injective’s high-performance L1. Early testnet reports already list 127 projects building, with DeFi protocols targeting arbitrage opportunities between Cosmos and Ethereum.
If traction continues, Injective could mirror the path Avalanche took in 2021, when its own EVM rollout triggered a 327% rally. Still, competition from established players like Polygon’s zkEVM and zkSync may limit Injective’s first-mover advantage unless it secures unique cross-chain liquidity.
Outlook
The short-term technical picture suggests caution, with Ali Martinez’s $8 target looming if momentum doesn’t recover. However, the Ethernia upgrade represents a long-term growth catalyst that could eventually flip sentiment. The key question now is whether Injective can attract enough developers and liquidity to offset bearish charts and turn its narrative bullish once again.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/expert-predicts-brutal-injective-drop-but-this-upgrade-could-flip-everything/