Injective Price Surge Possible as Short Squeeze Brews
Injective (INJ) is trading at $4.96, with 57.8% of retail traders holding net short positions.
This has led to a short squeeze scenario brewing, where a small price movement could trigger a sharp increase in buying activity and potentially push the price up to $5.38.
The technical analysis suggests that the market is coiled, with momentum indicators showing signs of selling exhaustion and a build-up of buying pressure.
The Bollinger Band geometry indicates that the upper band at $5.38 is the natural expansion target, while the lower band at $4.69 is the level that would invalidate the setup entirely.
Notably, retail futures positioning is 57.8% net short, with shorts paying negative funding, and spot taker buy volume outpacing sells by a 1.20 ratio.