Injective feels the heat as CLARITY Act vote shakes the market, drops 10% in 24 hours
The crypto market has seen over $630 million liquidated in the past 24 hours after the Clarity Act vote sentiment shift.
Injective [INJ] has fallen 10.2% over the past 24 hours. It had a bullish start to the week, rallying 6.45% from $5.90 to $6.28. The losses are due to the Bitcoin [BTC] sell-off that came after the CLARITY Act vote failed to pass in the Senate.
The past 24 hours have seen $637 million in liquidations in the crypto markets, with $525.3 million of those being long positions. This meant most of the market faced sizeable losses, including Injective.
Injective long-term price trends show signs of recovery
The token has been trending downward since 2025, when it slipped below a pivotal support zone around $16.15. This same area was retested in mid-July as resistance before another sell-off.
The downtrend’s latest lower high at $5.90, set in January earlier this year, was finally breached in May. After a retracement to $4.10, the INJ bulls were once again fighting to clear the $5.90 resistance zone.
Can Injective buyers initiate a bull run in these market conditions?
Certainly in the short term, the market appeared prime for explosive volatility. Moreover, Bitcoin has already tested the $82k supply zone, the high from May, and faced rejection. A deeper retracement appeared likely.
The 1-day price structure for INJ has been bullish since the 155% rally the altcoin made from $2.74 to $7.00 in April and May. After a period of retracement, the internal structure was once again bullish.
The buyers were able to drive a rally beyond the $6.05 previous local high to record a new local high at $6.71. The retracement back below $6 since then can be considered part of a healthy market.
If Injective can stay above the $5.26 demand zone, it would be a good sign for the bulls. On the other hand, a price slide below $4.65 would invalidate the bullish bias on the daily timeframe.
Final Summary
- The CLARITY Act vote and the 92.5% rate hike odds have made crypto market participants increasingly bearish over the past 24 hours.
- Injective price trends have reflected the short-term bearish sentiment shift, but it has also retraced into a key local demand zone.
