Injective Coils for Short Squeeze as Retail Traders Overplay Hand

Injective (INJ) is currently trading at $4.96, with a significant portion of retail traders holding short positions. According to data from Blockchain.news, 57.8% of retail traders are net short, and those who are short on INJ are paying negative funding.

This divergence between crowded short positioning and active buy-side order flow has historically resolved violently in the buyers' favor. The spot taker buy volume is outpacing sells by a 1.20 ratio, indicating that aggressive market buyers are stepping in while retail fades the move.

The technical setup for INJ is particularly interesting, with momentum having evolved to show selling exhaustion. The MACD histogram has compressed to absolute zero, and the RSI is at just under 48. However, the Stochastic oscillator suggests a quiet rotation building below the surface.

The Bollinger Band geometry indicates that price currently occupies the lower 39% of the band range, with the upper band at $5.38 as the natural expansion target. If INJ breaks above this level and holds as support, it could open up a trade towards $5.80-$6.00 in the next 20-30 days.