INJ price under bearish pressure as Injective announces a new ecosystem growth initiative

Injective has just announced a new Revenue Fund aimed at boosting ecosystem growth just as the INJ token comes under pressure from a bearish chart pattern in the near term.

On June 26th at the NYC Summit, Injective (INJ) announced the launch of Injective Revenue Fund, a new initiative designed to accelerate ecosystem development, scale on-chain revenue, and enhance INJ token’s deflationary mechanics.

While specific implementation details are unclear at press time, the initiative will likely involve channeling protocol revenue into ecosystem expansion, supporting builders and dApps that drive user growth and network activity, and increasing token burns fueled by higher on-chain fee generation.

The development comes at a pivotal moment as INJ price has recently broken below a key support level following the confirmation of a bearish head and shoulders pattern on the daily chart. The price dipped to an intraday low of $8.95 on June 22, testing a horizontal support zone established in early May, which now serves as a critical near-term level.

INJ price is now hovering just beneath the broken neckline around $11.20, with momentum indicators — both RSI and MACD — reinforcing the bearish outlook, though the selling pressure appears to be weakening slightly. The token also fell below its 20-day EMA, signaling continued downside pressure in the near term unless a reclaim of the neckline occurs.

That said, the recent dip to $8.95 formed a higher low along the ascending long-term trendline, which formed after INJ price had reversed from $6.34 in early April — the lowest level since September 2023. This suggests that, despite the bearish breakdown, INJ remains technically within a broader uptrend, reinforced by its continued position above the 100-day SMA.

If the price reclaims the neckline and closes above $11.30 – $12.00 with strong volume, the bearish scenario weakens. That would form a bear trap, and bulls could push to retest $14.30 — the swing high that marked the peak of the right shoulder.