Injective Price Rally Hits Roadblock Amid Growing Sell Pressure

Injective (INJ) has been showing signs of strength in the market, with investors increasingly accumulating the asset. The perpetual market long-to-short ratio indicates a slight edge for long traders, but the volume controlled by long traders has been steadily declining. This decline raises questions about whether INJ could soon begin to drop, potentially causing it to underperform as it did over the last 30 days when it plummeted by 8.91%. The top three exchanges controlling the most INJ volume - Binance, LBank, and Bybit - show that sellers have gradually been dominating the perpetual market, with sell volume crossing 51% on each exchange.

The OI-weighted funding rate has been nearly flat, indicating indecision in the market. This could imply that INJ might flip in either direction, making it important for traders to take a cautious position. Historically, a hike in volume alongside the price is a sign that a rally is likely to continue as investors remain largely bullish.