Inj Price Rally May Be Short-Lived as Momentum Falters

INJ price surged 9.73% in a day to $5.62, but this explosive move may not be as convincing as it seems.

The sudden increase in price coincided with a decrease of 6.58% in open interest, which is often an indicator of short covering rather than fresh conviction buying.

Despite the bullish trend structure, with INJ trading above its moving averages on all timeframes, momentum as measured by the MACD histogram has stalled, printing dead flat at zero.

This divergence between price action and momentum suggests that traders need to be cautious about this rally and consider the possibility of a mean reversion.