Injective (INJ) remained under selling pressure as bearish technical indicators continued to weigh on short-term sentiment. Nevertheless, the market structure still leaves room for a potential recovery if buyers regain momentum. Meanwhile, the protocol's latest community buyback initiative reinforces its deflationary approach and incentivizes ecosystem participation.

At the time of writing, INJ is trading at $4.60, with a 24-hour trading volume of $60.49 million and a market capitalization of $453.43 million, according to CoinMarketCap. Despite signs of stability over the past 24 hours, the INJ price structure combined with the buyback program suggests the potential for a reversal in upcoming sessions.

INJ Price Faces Critical Resistance Levels

According to TradingView, the INJ price is extending its recent decline and slipping below the 20-day Bollinger Band midpoint near $5.00. Consecutive bearish candles highlight weakening buying momentum, while repeated rejection around the $4.95–$5.00 range confirms that sellers continue to control the short-term price structure on the daily timeframe.

The Ichimoku Cloud reinforces a bearish outlook, as INJ trades below both the Tenkan-sen and Kijun-sen, with the future cloud acting as overhead resistance between $4.95 and $5.10. Unless buyers reclaim this region, downside pressure may persist toward $4.35 and potentially the $4.20 support level.

The Bollinger Bands are spreading wide as the price approaches the lower border, indicating that volatility is rising and bearish pressure remains dominant. A clear push above the $5.10 level could reverse the current downtrend and allow prices to rise toward $5.40 and $5.80. However, failure to break out would keep sellers in control.

Injective Launches August Community Buyback

Data from Injective confirms that the network has initiated its community buyback for August, described as one of the largest token burns carried out by the protocol to date. More than 33,000 INJ tokens are expected to be permanently removed from circulation, reinforcing the deflationary design of the network.

🚨 August's $INJ Community BuyBack is now open, and it's a big one Upwards of 33,000+ $INJ is set to be permanently removed from circulation, with rewards going straight to the ninjas who show up Move fast, these fill quickly 👇 pic.twitter.com/QPeBnOBw08 — Injective 🥷 (@injective) July 29, 2026

The protocol also recognizes highly active community members, known as "Ninjas," who participate in the buyback scheme. Through the combination of token burns and rewards for participating users, Injective aims to boost community engagement and broader ecosystem activity.

Regular token burns are a core mechanism of Injective's tokenomics. INJ operates as the native staking and governance asset for the Injective Protocol, a layer-1 blockchain built specifically for finance applications using the Cosmos SDK. By periodically removing tokens from supply, the protocol aims to counterbalance inflationary issuance from staking rewards and gradually reduce circulating supply over time—a model adopted by several blockchain networks to align long-term token economics with ecosystem growth.

Despite the buyback program and bullish price projections from some analysts, INJ continues to trade in neutral territory. This movement aligns with the broader cryptocurrency market's cautious tone, as Bitcoin itself has been moving sideways. Layer-1 tokens broadly have faced headwinds as market participants weigh macroeconomic uncertainty against ongoing protocol-level developments.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.