The value of Injective (INJ) is currently dropping, staying in the lower end of the market. Even though the network is trying to lower prices, they continue to fall. Along with the general market downturn, bad times may not be over for the INJ token. Investors need to closely monitor certain levels at this point.

Even after burning 10,000 INJ tokens recently, the price of Injective remains weak. Token burning is when a certain amount of cryptocurrency gets permanently removed from circulation which can have various effects on a project and token holders. By reducing the total token supply, it can increase the demand and make the tokens more valuable. However, this effect on the price of INJ seems delayed as it is currently at $26.

For INJ, the Relative Strength Index (RSI) has not gone above the average level of 50 and continues to show lower highs, indicating a standstill trend. The MACD metric is also in the negative zone, supporting the downward trend. While bulls are trying to hold the current position, an increase in the volume profile suggests that prices could continue to drop. However, if the price goes above $31.18 and then $35.23, it could attract more buyers and invalidate the idea of a continued downward trend.

In order to reach these points, bulls must overcome the resistance of the 21 and 50-day Smooth Moving Averages (SMMA) at $31.80 and $33.08. An increase in trading activity is expected when prices hit these levels, showing more buyer interest. If buyer momentum is strong enough, INJ could surpass $39.28 and eventually reach its previous high of $53.00.