Injective’s INJ token has experienced a deep correction, falling approximately 95% from its cycle highs. Analysis by Crypto Patel on X suggests a historical demand zone is forming between $1.10 and $3.00, but a weekly close below $1.10 could undermine the bullish structure. Technical indicators remain weak as the price tests key support levels.
Market data shared by Crypto Patel on X highlighted a large cyclical pattern in Injective price behavior. The asset’s near-95% decline from its macro peak has historically preceded strong recovery phases in past cycles. The analysis suggests the market is in a fair value gap on a high timeframe, where buying interest may slowly offset selling pressure.
This mirrors a previous market phase where the INJ price saw rapid growth, a significant decline, and then a re-accumulation period. Prices are currently contracting while a downtrend resistance holds, indicating low volatility as traders await clearer signals. Past movements in 2023-2024 provided gains exceeding 4,600% from the early base.
After such massive gains, prolonged pullbacks typically occur as early investors take profits and new capital enters. The region between $1.70 and $2.70 is now considered a major demand zone. However, data from TradingView charts indicates that momentum remains weak.
The price recently traded around $3.06, having fallen about 13% in one week while forming lower highs. The weekly RSI is near oversold territory at 30, but a downtrend can persist even with stretched momentum. Other indicators like the MACD remain below zero, and a negative Chaikin Oscillator signals capital outflows rather than buying pressure.
The market configuration implies a strong weekly close below $1.10 poses further downside risk, invalidating the long-term accumulation thesis. For a reversal, the price must overcome the lower resistance line and establish higher highs. Long-term cyclical targets are cited around $80, potentially reaching $200 if a bullish cycle extends.
Volume during the sell-off appeared to follow liquidity rather than a structured decline. Longer lower-wick candles show buyer attempts to lift the price, though sufficient sustained demand has not yet materialized. The overall technical picture continues to lean bearish as key supports are tested.
