Injective [INJ] Drops 12% as Veteran Users Sell Assets

Injective [INJ] has experienced a significant decline, dropping by 12% in the past 24 hours. This sharp decrease is one of the most substantial losses observed in the crypto market recently. The decline is primarily attributed to the return of older users, who are known for their aggressive trading behavior and high-conviction holdings. These users, who have been absent for some time, are now re-entering the market and offloading their assets, contributing to the selling pressure.

At the time of writing, the number of returning users has surged to 57,700, marking the highest level in over a year. This influx of veteran holders suggests that they are taking advantage of the price drop to sell their assets. Concurrently, new user activity has dropped sharply, with only 512 new participants joining the market. This indicates that potential newcomers view INJ as a high-risk investment and are hesitant to enter the market.

Despite the selling pressure, there are signs of opportunistic buying among investors. DeFi and non-DeFi investors see the price drop as a buying opportunity and have accumulated $1.36 million worth of INJ. DeFi investors alone purchased $520,000 worth of INJ and deposited it into liquidity pools, causing the Total Value Locked (TVL) to jump from $33.9 million to $34.42 million within 24 hours. In non-DeFi segments, accumulation has been strong, with $840,000 worth of INJ withdrawn from centralized exchanges. This growing accumulation trend signals a long-term outlook, as DeFi investors are locking assets in protocols, while spot traders are transferring tokens from exchanges to private wallets.

As both bearish and bullish signals emerge, the Liquidation Heatmap suggests that INJ may soon make a significant move. The heatmap, a tool used to track likely price movements based on liquidity levels, indicates that the next major liquidity pocket is above the current price, potentially attracting INJ up to $11. However, the highest concentration of liquidity is 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.