Latest Injective (INJ) Price Analysis

Deep Dive

1. Supply Squeeze Implementation (Bullish Impact)

Overview:
The Injective community activated IIP-617 on January 30, 2026, after a 99.89% approval vote. This permanently reduces new token issuance and increases the burn rate to 8% of network fees, accelerating INJ’s deflationary mechanics.

What this means:
By doubling the rate of net supply contraction, the upgrade structurally tightens INJ’s scarcity. Reduced new supply lessens sell pressure from inflation, while heightened burns link tokenomics to ecosystem usage – creating bullish alignment between network growth and token value.

What to look out for:
Monitor weekly burn metrics and circulating supply changes at Injective Hub.

2. Technical Rebound (Bullish Near-Term)

Overview:
INJ’s 7-day RSI hit oversold extremes (15.03), signaling exhaustion in the downtrend. Price bounced from the $3.38 Fibonacci support level with rising volume, confirming short-term demand.

What this means:
The rebound reflects trader positioning for mean reversion after excessive selling. With RSI now recovering (26.9), momentum favors continued relief rallies toward the $4.00–$4.20 resistance zone.

3. Broader Market Lift (Neutral Catalyst)

Overview:
Global crypto market cap rose 1.85% amid reduced fear (Fear & Greed Index: 15→18), lifting altcoins. INJ’s 24h volume surged 4.85% to $64.3M, confirming participation.

What this means:
While not INJ-specific, the market tailwind amplified its coin-specific catalysts. Higher turnover signals conviction in the rebound, though sustained gains require continued deflationary traction.

Conclusion

INJ’s rebound combines protocol-driven scarcity mechanics with technical and market tailwinds, though it remains 78% below its yearly high. Key watch: Can daily active addresses sustain above 120K to validate usage-driven burns?