Despite a recent boost in Injective (INJ) price following the launch of its $100 million Digital Asset Treasury, analysts suggest a potential market downturn. The token’s price rose 3.6% on Tuesday, September 2nd, driven by investor optimism surrounding the treasury’s growth and attracting investments from prominent companies like FalconX, Monarq, Canary Capital, and Kraken. This surge has brought INJ to $12.90, a notable increase over its lowest point this week but still down more than 60% compared to its November peak last year. The fund’s launch coincides with growing momentum in institutional investment into cryptocurrencies. Over 100 publicly-traded companies now hold nearly a million Bitcoin (BTC), while others have invested in prominent tokens such as Ethereum, Tron, and XRP. Injective is also capitalizing on the potential of an Injective spot ETF, which has opened the comment period for SEC review. This development could boost demand for INJ. However, Injective’s small market share within the crypto industry presents a challenge. DeFi Llama data reveals that the network’s total value locked currently stands at $80 million, down significantly from over $158 million last year. The token has experienced modest trading volume with just $898,000 in decentralized exchange transactions and $26 million in stablecoin trading within the past 24 hours. Technical analysis reveals INJ price peaked at $16.46 in August before retracing to a low of $12.1. The daily chart displays a rising wedge pattern, and declining MACD lines suggest a bearish breakout is likely, potentially targeting support around $10, representing a potential decline of 21% from the current level. Conversely, the token may experience an upward trend and test resistance at $16.46.