Injective Introduces Revenue Fund to Drive Ecosystem Growth Amid INJ Price Pressure
Injective has recently unveiled a new Revenue Fund with the goal of accelerating ecosystem development, boosting on-chain revenue, and enhancing the deflationary mechanics of the INJ token. This announcement comes at a time when the INJ token is facing downward pressure due to a bearish chart pattern in the short term.
During the NYC Summit on June 26th, Injective (INJ) made the announcement regarding the launch of the Injective Revenue Fund. This initiative is designed to drive ecosystem growth by directing protocol revenue towards expanding the ecosystem, supporting builders and dApps that drive user adoption, and increasing token burns through higher on-chain fee generation.
As the INJ price recently broke below a crucial support level, confirming a bearish head and shoulders pattern on the daily chart, the price dipped to $8.95 on June 22, testing a key horizontal support zone established in early May. This support level now serves as a critical point to watch in the near term.
Currently, the INJ price is hovering just below the broken neckline around $11.20, with momentum indicators indicating a bearish outlook. Although selling pressure seems to be easing slightly, the token remains below its 20-day EMA, suggesting continued downside pressure unless it can reclaim the neckline.
Despite the bearish breakdown, the recent dip to $8.95 formed a higher low along the ascending long-term trendline, indicating that INJ remains within a broader uptrend. The token has also maintained its position above the 100-day SMA, further supporting the bullish case.
If the price manages to reclaim the neckline and close above $11.30 – $12.00 with strong volume, the bearish scenario could weaken. This would potentially trigger a bear trap, leading to a retest of the $14.30 swing high, marking the peak of the right shoulder.
Overall, the introduction of the Injective Revenue Fund signals a proactive approach towards ecosystem growth, even as the INJ token faces short-term price pressure. With a focus on expanding the ecosystem and enhancing token economics, Injective aims to drive long-term value for its community and stakeholders.