Injective Drops Revenue Fund Bomb Amid INJ Price Plunge

Ecosystem Growth Gets a Boost Just as INJ Faces Bearish Chart Pattern

Hold onto your hats, folks! Injective just dropped a major bombshell with their new Revenue Fund, designed to supercharge ecosystem growth. And guess what? It comes at a time when the INJ token is feeling the heat from a bearish chart pattern in the near term.

At the NYC Summit on June 26th, Injective (INJ) unleashed the Injective Revenue Fund, a game-changing initiative set to accelerate ecosystem development, scale on-chain revenue like never before, and crank up the INJ token's deflationary mechanics to new heights.

While the nitty-gritty details are still under wraps, this move is all about pouring protocol revenue into expanding the ecosystem, throwing support behind builders and dApps that are driving user growth and network activity through the roof, and amping up token burns with a surge in on-chain fee generation.

But here's the kicker: this development comes at a crucial turning point for INJ. The price just nosedived below a key support level after a bearish head and shoulders pattern got confirmed on the daily chart. Talk about a wild ride! The price hit an intraday low of $8.95 on June 22, testing a horizontal support zone that was established back in early May. Right now, it's a make-or-break level for the near term.

As we speak, INJ is teetering just below the broken neckline around $11.20. And get this: both the RSI and MACD are doubling down on the bearish outlook, although the selling pressure seems to be easing up a bit. The token also slipped below its 20-day EMA, signaling more downside pressure in the near term unless it can reclaim that neckline.

But wait, there's a glimmer of hope! That recent dip to $8.95 actually formed a higher low along the ascending long-term trendline, which kicked off after INJ reversed from $6.34 in early April - the lowest level since September 2023. So, despite the bearish breakdown, INJ is still hanging in there within a broader uptrend, thanks to its position above the 100-day SMA.

Now, if the price can reclaim the neckline and close above $11.30 - $12.00 with some serious volume behind it, the bearish scenario starts to crumble. That would be a classic bear trap, and the bulls could come charging back to retest $14.30 - the swing high that marked the peak of the right shoulder. Buckle up, crypto fans, because things are about to get wild!