Injective (INJ) fell to $3.65 on January 31, 2026, marking a weekly loss of nearly 20%. Technical analysis shows the token testing a key support level within a long-term descending channel, suggesting potential for a short-term bounce. Concurrently, the Injective protocol launched its INJ Supply Squeeze, an upgrade designed to accelerate the deflationary mechanism of the token’s supply.
The price of Injective (INJ) declined 7.37% in 24 hours to $3.65 according to CoinMarketCap data. This drop extended the token’s weekly losses to approximately 20%, amidst broader market selling pressure. Daily trading volume also decreased by nearly 20% to just over $51 million.
Analysts note the token is navigating a long-term descending channel on its weekly chart. Crypto analyst Jonathan Carter stated in an X post that “The token shows resilience at this key support level.” He suggested a successful bounce could target higher price points but viewed such moves as likely corrective.
Carter advised that any rally should be considered a selling opportunity without a high-volume breakout. The analyst’s assessment is based on the pattern of lower highs and lower lows within the established channel. Volume trends have consistently expanded during sell-offs, confirming prevailing bearish momentum.
Separately, Injective implemented a major protocol update focused on its monetary design. The newly launched INJ Supply Squeeze aims to tighten token issuance and double the rate of INJ deflation. This mechanism works alongside the existing Community BuyBack and burn processes.
Since the mainnet launch, approximately 6.85 million INJ tokens have been permanently removed from circulation. The updated model will continue using ecosystem-generated revenue to fund monthly buyback and burn events. Injective co-founder Eric Chen stated the update strengthens the network’s economic foundation by accelerating deflation.
