Injective (INJ) climbed toward a six-month high of $6.36 between May 29 and May 30, 2026, marking a significant recovery for the Layer-1 protocol. The asset traded at $6.1 by late evening on May 29, a 14.4% daily increase that propelled its market capitalization to $628 million. This movement represents the first time INJ has held above the $6 level in 2026, rebounding from a mid-May low of $4.43.
The price action coincided with several structural updates, including the May 29 launch of native INJ staking on Binance US for American users. This development reportedly contributed to a 12% value increase within a single 24-hour window. Additionally, Injective introduced native USDC on its mainnet through Circle’s Cross-Chain Transfer Protocol (CCTP) on May 27, 2026, to enhance liquidity and trading efficiency.
Trading activity surged alongside these updates, with 24-hour volume on Kraken reaching $323.5 million. Market data from CoinGecko indicated a broader volume spike of 148.9%, totaling nearly $360 million across all exchanges by May 30. This volatility triggered over $441,000 in short-position liquidations, as the rapid reversal forced bearish traders to cover their exposures.
Speculative demand drives derivatives growth
The surge in the Injective price has been fueled by a sharp rise in derivatives activity. Data from CoinGlass shows that Open Interest (OI) climbed 32.3% to $151 million, while derivatives volume rose 11% to $337 million. Such a tandem rise in volume and OI typically indicates deep market participation and the opening of new positions.
Sentiment remains skewed toward the upside, with a Long/Short Ratio of 1.8. Long positions currently account for 64.8% of the market, suggesting that participants are largely chasing the rally despite broader pressures where mid-cap tokens face selling wave characteristics. This bullish trend is supported by Injective’s presence on Bitnomial’s CFTC-regulated platform, where regulated INJ futures recently began trading.
The tightening of liquid supply may be contributing to these price swings. Approximately 58% of the total INJ supply is currently staked, leaving a limited amount of the asset available for active trading on exchanges. This supply-side constraint often amplifies price movements when demand suddenly spikes, a factor frequently observed in liquidity surge events across the altcoin market.
Metrics signal both dominance and profit taking
Technical indicators suggest that buyers currently maintain control, though internal exchange data reveals growing selling pressure. The Relative Strength Index (RSI) recently made a bullish crossover to 73, though the signal line sits at 66. While an RSI above 70 indicates buyer dominance, the narrow margin suggests the market is reaching a point where price pressure risks could materialize.
Profit-taking has already reached levels not seen in months. Spot Netflow on exchanges turned positive at $3.2 million, a sharp reversal from the -$1.28 million recorded earlier. This shift indicates that more INJ is flowing onto exchanges than off them, as investors who were previously “underwater” move to cash out at the $6.30 peak.
Total Value Locked (TVL) on the Injective network rose by 6% over the last 24 hours to approximately $28.6 million. While this is an improvement from recent lows, it remains significantly below the April 2024 peak of nearly $203 million. Traders are now watching to see if the network can maintain support at $5.40, a level that must hold to avoid a deeper market correction.
Projected targets for Injective in 2026
If demand persists and pushes the RSI above the 80 mark, analysts suggest INJ could challenge the $7 resistance level. PricePrediction models currently forecast a minimum price of $7.11 for Injective in 2026, while other analysts suggest the token could trade between $7.60 and $9.51 at peak valuation this year.
These targets rely on the continued growth of the ecosystem, which now includes over 100 projects and 500,000 community members. While the current 6-month high is a fraction of the $52.62 all-time high reached in March 2024, the recent integration of native USDC and regulated futures provides a different fundamental backdrop than previous cycles. Investors are closely watching how utility shifts dictate 2026 valuations for protocols like Injective that focus on decentralized derivatives.
The immediate outlook depends on whether the bulls can absorb the $3.2 million in positive spot netflow. If the $6.40 level is broken with sufficient volume, the price could challenge a range between $6.80 and $7.20. Failure to maintain the current momentum would likely see a retreat to the $5.40 support zone.