Injective's INJ Token Faces Crucial Test as Analyst Sees Bullish Potential

Injective's token, INJ, is navigating a critical technical phase as the price faces renewed selling pressure. According to Crypto Catalysts, the token has reached an 'extreme bottom' and its setup bears similarities with that of ZEC during a previous market cycle.

The recent pullback comes after a bullish move out of the $4.80 range, where INJ found consolidation before moving higher. The break above the upper Bollinger Band saw the token reach a high of around $6.80, but selling pressure soon followed, with traders locking in profits and causing the price to dip below its 20-period moving average.

The absence of support at this level indicates weakening bull force, making the lower Bollinger Band at about $5.7035 an important area for market defense. A successful defense would enable buyers to set a base for the next rally, while violation would mean continued correction.