Injective (INJ) is forming an inverse head-and-shoulders pattern, with potential to rise up to $41, though breakout confirmation is pending.

A bullish close above $16.20 is needed to confirm the breakout, with resistance targets at $26.36, $34.32, and $41.36.

Rising volume and open interest indicate growing market activity, but caution is advised until the $16.20 level is breached.

Injective (INJ) is now in the process of building a reversal head-and-shoulders (H&S) formation. The formation of this chart may result in a significant breakout. The breakout, however, is not confirmed, and traders are keenly observing to test critical levels. In case of breakout, Injective has considerable aspects of increasing up to 41 dollars in the short run.

To confirm the breakout, Injective must close bullish at prices above the $16.20 mark of the daily chart. This is where the short term action is. Closing above this mark successfully would be an indication of a rally that the market is doing. It would support the inverse H&S pattern too. The following levels of resistance to watch will be the levels of $26.36, $34.32, and $41.36.

Source: X

Injective’s Pre-Breakout Compression

At this moment, Injective is experimenting with an essential area prior to the breakout. This area is pre-breakout compression, and it is where the price is accumulating. The trend line of rising is still in action, and it is a sign of stability of the market structure. This can also be considered as a strong bullish factor because the price has been rejected by the neckline of the pattern twice already.

Also Read: Injective Trading Volume Jumps 60%, Is a Bull Rally Incoming?

Traders must be careful despite the bullish setup. This accumulation is speculative until a break above the price of $16.20. It is not without its danger. A breakdown lower than $12 would change the bullish setupand imply a pullback.

Injective Volume Surge Signals Potential Breakout

Market data indicate that the volume around Injective has been increasing. The data on Coinglass shows that the volume has increased by 22.75% to $332.48 million. The open interest has also jumped up by 13.29% to reach an amount of $200.48 million. These signs signify that the market players are increasingly engaging to the extent that they may be expecting a breakout.

Source: Coinglass

The price action of Injective will play a pivotal role in the short term. The investors are seeking the confirmation of the inverse H&S formation. In case of the breakout, the targets are outlined as follows: $26.36, $34.32, and $41.36. All these levels are considered as a point of resistance. These levels will be closely observed by traders in order to determine the vigor of the rally.

At this point, market sentiment regarding Injective is strengthening. The surge in volume and open interest in the recent past shows that traders are gambling on a price breakout. The breakout is however, not confirmed until it breaks the $16.20 mark. If Injective manages to maintain above this level, it may achieve the targets, and $41 is one of its long-term targets.

Also Read: Injective (INJ) Price Prediction: INJ Struggles Below $13.80 as Market Momentum Stalls

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Filed under: Bitcoin - @ July 27, 2025 4:30 pm