Injective slumps 12% – Assessing if you should buy INJ now

• INJ’s returning user count has hit a record high, with the majority offloading their holdings.
• Some investor cohorts still view INJ as a worthy investment and continue accumulating the asset.

Injective [INJ] has suffered a steep 12% drop in the past 24 hours—one of the largest losses in the crypto market, a press time.

These losses, largely driven by the return of older users, don’t necessarily mark the end for INJ. On-chain analysis highlights multiple buying signals that could stabilize or lift the price.

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.

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.

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 Spot Exchange Netflow data showed $840,000 worth of INJ was withdrawn from centralized exchanges, at press time.

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.

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.