Despite a flurry of major initiatives in the first quarter, the price of Injective (INJ) has continued to decline, now residing in an oversold territory. While this indicates potential for a short-term rebound, the broader market sentiment remains bearish. 2023 has seen Injective Labs launch several key projects and updates. These include introducing native Ethereum Virtual Machine support on its Layer 1 blockchain; launching an AI Index that aggregates 10 major AI tokens alongside traditional equities like TAO, FET, NVDA, and PLTR; and developing a TradFi Stocks index tracking global public companies such as Amazon, Apple, Microsoft, and Goldman Sachs. These updates haven’t stopped the price from descending, with momentum particularly evident in late December when the 20-day Exponential Moving Average (EMA) crossed below the 50-day Simple Moving Average (SMA). A brief bullish attempt emerged in early to mid-January, but the price briefly climbed above the 20 EMA and nearly touched the 50 SMA. The most recent breakdown took place through the $8.10-$8.50 support zone, which had held for about a month. The current price sits at $6.93, down by 15% over the past 24 hours. In addition to this decline, the Relative Strength Index (RSI) has plunged into an oversold zone, sitting at a low 26.41 as of press time. The Moving Average Convergence/Divergence (MACD) indicator also shows bearish signals, with the MACD line below the signal line and red histogram bars indicating negative momentum. However, the lines are converging, suggesting weakening bearish pressure. While an oversold RSI and MACD suggest a potential for short-term bounces, the broader market structure remains firmly bearish. With the $8.10-$8.50 support zone breached, the next key support lies in the $5.50 region — a level that was tested during May-June 2023. If the downward trend continues, this area could act as the next barrier.