INJ Plummets 12% – Is This Your Golden Buying Opportunity?

Injective takes a nosedive – and traders are scrambling to decode the signal in the noise.

Blood in the streets or just another Tuesday in crypto?

The numbers don't lie: a 12% haircut puts INJ on sale. But is this a fire sale or a falling knife? Smart money watches the order books while retail panics – as usual.

Here's what the charts scream: volatility equals opportunity. Always has. Just ask the hedge funds quietly accumulating while Twitter loses its mind.

Final thought: In a market where 'fundamentals' means whatever pumps your bags, maybe technicals are the only gospel left. Amen.

What is behind the selling pressure?

In the past 24 hours, the number of Returning Users has surged to a new year-to-date high.

At the time of writing, Returning Users surged to 57,700, the highest level in over a year. These users—typically long-term holders and active traders—are known to re-enter markets after past purchases and often trade aggressively.

Their return during INJ’s sharp price decline suggests that high-conviction holders may be offloading assets.

Source: Artemis

Also, New User activity has dropped sharply, with only 512 new participants joining. 

This indicates that while veteran holders are selling, potential newcomers view INJ as high-risk and are reluctant to invest.

INJ drop triggers opportunistic buying among investors

DeFi and non-DeFi investors see the price drop as a buying opportunity. Together, they have accumulated $1.36 million worth of INJ.

DeFi investors alone purchased $520,000 worth of INJ and deposited it into liquidity pools.

Source: DeFiLlama

This was evident as Total Value Locked (TVL) jumped from $33.9 million to $34.42 million within 24 hours.

Similarly, in non-DeFi segments, accumulation has been strong. Spot Exchange Netflow data showed $840,000 worth of INJ was withdrawn from centralized exchanges, at press time.

Source: CoinGlass

This growing accumulation trend signals a long-term outlook. DeFi investors are locking assets in protocols, while spot traders are transferring tokens from exchanges to private wallets.

Where will INJ go next?

As both bearish and bullish signals emerge, AMBCrypto analyzed the Liquidation Heatmap.

The heatmap, a tool used to track likely price movements based on liquidity levels, suggests that INJ may soon make a significant move.

At the time of writing, the next major liquidity pocket was spotted above the current price, potentially attracting INJ up to $11.

Source: CoinGlass

However, the highest concentration of liquidity was around $10.1, marked by the yellow Supertrend line.

If INJ follows its historical pattern, the asset could rally to this level despite the current selling pressure from returning users.