Injective price jumps 5%: can the Washington summit send INJ to $6?

Injective's native token INJ has climbed nearly 5% over the past week and has returned to the edge of the $5 level as institutional interest ahead of its Washington summit, ecosystem expansion, and improving technical indicators have supported buying momentum.

According to CoinGecko data, INJ traded around $4.93 at the time of writing after gaining about 4.8% over the previous seven days. 

The token recovered from lows near $4.55 earlier in the week and briefly moved back above $5 before parting with some of the gains. 

Traders are now watching whether it can establish a sustained move above the psychological resistance.

Institutional momentum and ecosystem updates support sentiment

Much of the recent optimism has centred on the upcoming Injective Summit, scheduled for July 16 in Washington, D.C. 

Injective has positioned the event around real-world assets, institutional decentralised finance and regulated on-chain finance, with participants expected from BlackRock, Grayscale, Invesco and US policymakers.

Alongside preparations for the summit, Injective outlined several ecosystem developments during the past week. 

Injective and Circle hosted a workshop covering bridged USDC, native USDC, Cross-Chain Transfer Protocol (CCTP) integration and related developer tools, adding to the network's focus on regulated on-chain payments.

Community activity extended beyond the United States as Injective organised an ecosystem meetup during WebX in Tokyo, adding another venue for developers and ecosystem partners ahead of the Washington event.

Protocol fundamentals have also remained supportive.

Injective said its community buyback programme permanently removed about 43,500 INJ from circulation this month, equivalent to nearly $200,000 at current prices, continuing the network's automated buyback-and-burn mechanism after the recent IIP-665 mainnet upgrade improved network performance.

Security concerns that briefly emerged last week have also faded.

Between July 8 and July 10, attackers compromised an Injective developer's GitHub account and uploaded a malicious TypeScript SDK package to npm. 

Injective said the package was identified and deprecated within 49 minutes and confirmed that no on-chain user funds were lost, allowing market attention to return to the network's upcoming catalysts.

Can INJ reclaim $5?

The daily chart shows INJ attempting to build on its recovery after climbing back above the 20-day and 50-day exponential moving averages, while approaching the 100-day EMA near $5.10.

INJ/USDT 1-day price chart. Source: TradingView.

The Volume Profile Visible Range (VPVR) indicates heavy trading activity around the current price zone, suggesting buyers and sellers continue to defend the $4.80-$5.00 region.

A daily close above the 100-day EMA would strengthen the case for a move toward the next resistance around $5.20.

If buyers clear that zone with strong volume, the rally could extend toward the $6 area, which also coincides with the next significant price cluster on the chart.

On the 4-hour chart, momentum has improved after the recent rebound.

INJ/USDT 4-hour price chart. Source: TradingView.

The Relative Strength Index has recovered to around 56 after bouncing from oversold levels.

As such, there is still room for growth before some selling pressure may emerge.

At the same time, the Moving Average Convergence Divergence indicator has completed a bullish crossover and its histogram has turned positive, signalling that short-term momentum remains strong.

Price action over the past week also supports the technical picture.

CoinGecko data shows INJ has recovered from repeated tests of the $4.60-$4.70 support area before returning to the upper end of its recent trading range near $5.

Even so, the $5.10-$5.20 region remains the immediate hurdle. A rejection there could keep INJ trading between $4.70 and $5.10 until fresh buying emerges. 

A sustained breakout above that range, supported by stronger trading volume and continued ecosystem developments around the Injective Summit, would increase the probability of the rally extending toward $6.