INJ Price Squeeze Looms as Smart Money Goes Long

The price of INJ has been stuck in a bearish trend for weeks, but Iris Coleman believes that this is about to change. With retail traders piling into shorts and smart money quietly going long, the setup is ripe for a short squeeze.

Coleman points out that the momentum has flattened, and the histogram has essentially zeroed out, indicating that sellers are running out of conviction. The RSI hovering just below 45 keeps INJ out of oversold territory on the daily, but it's the Stochastic reading that deserves more attention.

The moving average stack remains structurally bearish in the short term, with price at $4.53 sandwiched below the 7-day SMA at $4.50. However, the 200-day SMA sitting at $4.13 provides a long-term floor for the asset.

Coleman notes that the spot market is telling one story, but the derivatives market is telling a much more interesting one. Retail traders are leaning short at a 56.3% to 43.7% split, while top traders are positioned 51.1% long. This divergence between dumb money and smart money is the single most important data point in this entire setup.

The taker buy/sell ratio adds to the bullish case, with aggressive buyers outpacing sellers by 25% in the most recent hourly period. Open interest has expanded 2% over 24 hours, which could be a sign that new shorts are entering the pool.