Injective's recent community vote to reduce the supply of INJ tokens has caused a surge in its value, with the price increasing by 33% over the past week. Despite this, futures traders have placed short bets against the token, risking a potential short squeeze if the price continues to rise. The approval of a governance proposal to transition to Injective 3.0 has contributed to positive sentiment and an 18% increase in the token's value in the past two days. However, the token's futures traders remain bearish, as indicated by the Long/Short ratio. Nevertheless, the growing demand for INJ puts these short traders at risk of a short squeeze. The rising relative strength index (RSI) and readings from the moving average convergence divergence (MACD) indicator also suggest a bullish outlook for the token. If buying pressure continues, the price could break resistance levels and potentially rally above $30. Conversely, if short bets win, the price could decline to $24.44.



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