Injective Breaks Down And Struggles to Rebound as Bulls Defend $8.41 Zone

$INJ price confirmed a bear flag breakdown to $7.77, validating bearish momentum after a sharp early-October sell-off.

Injective ecosystem expansion continues, backed by institutional investment and unique features like zero gas fees and cross-chain trading.

Market cap fell below $800M by October 17, matching the price decline, before showing signs of stabilization and recovery interest.

Despite a 7-day dip of 5.88% Injective (INJ) is trading at $8.48, up 4.91% in 24 hours. Bulls are now attempting to reclaim momentum after a bearish breakdown to $7.77, they are defending $8.41 zone.

Bear Flag Breakdown Pressures $INJ Price Near $8.00 Support

Alpha Crypto Signal confirmed that $INJ price broke down from a bear flag pattern, hitting $7.77 and validating a broader downtrend. This formation followed a sharp sell-off earlier in October, marked by high-volume panic selling and liquidation. The flag acted as a temporary retracement before the continuation of the bearish move.

After falling below the rising channel, $INJ began forming lower highs and lower lows, showing that the downtrend is still in place. Right now, it’s trading below the 9 EMA ($8.46) and the 50 SMA ($9.31), both pointing down — a clear sign that sellers are still in control.

Trading volume has also dropped suggesting uncertainty in the market. Unless bulls push the price back above with strong momentum, the bearish trend is likely to continue.

Fundamentals Support $INJ

Injective’s growing ecosystem continues to attract attention amid broader market volatility. A user highlighted that institutions like Pineapple Financial recently purchased $8.9 million in $INJ from open markets. This comes amid key developments such as the first staked ETF filing and expansion of the Helix DEX platform.

Helix lets users trade crypto, stocks, and even pre-IPO shares on one decentralized platform. Along with regular token burns and protocol upgrades, this supports Injective’s long-term growth. Even with recent price dips, its real-world use and growing features keep attracting users and developers.

Injective’s infrastructure features like MEV resistance, zero gas fees, and full on-chain order books make it attractive for institutional DeFi. With staking and burning tightening supply, long-term holders continue to monitor its development closely.

Market Structure and Sentiment Reflect Possible Stabilization

On the technical front, Injective is testing lower Bollinger Band support near $8.41. This level aligns with recent transaction milestones that boosted sentiment. As Bitcoin crossed $110,000, broader market momentum offered short-term relief to several altcoins, including $INJ.

From October 11 to October 18, Injective’s market cap dropped from over $970 million to just above $800 million. A series of lower highs and lower lows formed, indicating a strong downtrend, mirroring the price action seen in charts.

Despite this decline, a minor recovery was seen after October 17. Volume levels suggest selling pressure may be easing. Still, the $INJ price needs to reclaim key levels and attract renewed buying interest to escape this current range.

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