Injective climbs 45% to $6 as SEC registration, buybacks fuel rally

Injective's INJ token climbed 45 percent to $5.95 over the past week, breaking above a descending trendline that had capped price since early June. The move has shifted the short-term structure in favor of buyers as the token approaches the $6.00-$6.10 resistance zone.

The rally follows Injective Institutional Services' registration as an SEC transfer agent on Aug. 19, giving the entity a regulated framework for maintaining securities ownership records, according to the project. A separate post from MSB Intel claims the next community buyback takes place Wednesday with more than $168,000 allocated, though Injective has not independently confirmed the figure.

Injective's Community BuyBack mechanism uses ecosystem revenue to purchase INJ and remove the tokens from circulation, with more than 7 million INJ eliminated to date, the project said. The token gained roughly 8 percent around the SEC announcement before extending its advance. INJ trades at $5.95 with a market cap of $595.96 million and 24-hour volume of $177.3 million, CoinMarketCap data shows. The relative strength index reads 72.65, in overbought territory.

A sustained daily close above $6.00 would confirm the breakout and expose $6.50, followed by the $7.00-$7.20 area, with the larger $7.50-$8.00 resistance zone the next major test. The $5.40-$5.50 region is the key support that separates a healthy pause from a failed breakout.

SEC registration strengthens Injective's tokenization push

The transfer agent registration adds an institutional layer to Injective's broader tokenized-finance strategy, connecting on-chain transfers with compliant ownership tracking. While the status does not represent SEC approval of INJ or an endorsement of the token, it strengthens the project's ability to participate in regulated financial infrastructure. The development places Injective alongside a growing list of L1 networks competing for institutional tokenization flows, a segment where rivals such as Ethereum and Solana have also expanded their real-world asset offerings.

Buyback supply reduction supports the bull case

Injective's deflationary tokenomics provides a second layer to the rally. If ecosystem activity continues to generate revenue while market demand for INJ improves, the combination of purchases and permanent token removal could tighten the supply-side backdrop. The token's 99.97 million circulating supply against a 100 million total supply leaves limited new issuance pressure, CoinMarketCap data shows.

After a nearly 45 percent weekly gain, INJ remains vulnerable to profit-taking, particularly if buyers fail to establish a sustained close above $6.00. Holding the $5.40-$5.50 support during any pullback would keep the breakout structure intact, while a decisive loss could send the token back toward $5.00 and potentially the $4.80 area. The $8.00 target is becoming technically relevant, but INJ must first clear $6.50 and $7.00-$7.20 on strong volume, a multi-stage move rather than a single breakout candle.

This article is for informational purposes only and does not constitute investment advice.