Injective's altcoin INJ has surged 33% in value after a community vote to reduce its supply. Currently trading at $26.29, this move is fueling optimism around the token, despite futures traders betting against further price growth.
The transition from Injective 2.0 to 3.0 was approved by 99.99% of community members, making INJ one of the most deflationary assets. But despite the positive sentiment, short positions remain higher than long ones, indicating skepticism among traders.
The Long/Short Ratio is 0.99, suggesting bearish sentiment. However, the rising demand for INJ may result in a short squeeze, where shorted assets are forced to be bought back, driving prices up further.
Momentum indicators like the RSI, which is currently at 58.88, show a neutral to slightly bullish trend. This is echoed by the Moving Average Convergence Divergence (MACD) indicator, showing bullish momentum.
If the current trend continues, INJ's price might climb above $30, approaching recent highs. However, if short positions dominate, the price could fall to $24.44.
