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Injective (INJ) Slides 12% Amid Return of Veteran Traders, But Accumulation Signals Emerge
Injective (INJ) has experienced a sharp 12% decline over the past 24 hours, ranking among the steepest losses in the cryptocurrency market at press time. However, on-chain indicators suggest that this downturn may not necessarily signal the start of a prolonged bearish trend.
Return of Long-Term Traders Fuels Selling Pressure
A key factor behind the recent sell-off appears to be the sudden return of long-standing investors. On-chain data reveals that the number of Returning Users has spiked to 57,700 — the highest figure recorded in over a year. These participants, typically comprised of long-term holders and seasoned traders, are often known for re-entering the market during periods of heightened volatility, frequently engaging in aggressive profit-taking or portfolio rebalancing.
The sharp rise in their activity amid INJ’s price drop suggests that some veteran holders may be capitalizing on previous gains, intensifying short-term selling pressure.
Meanwhile, new user adoption has faltered. Only 512 new users joined the network during the same period, reflecting a hesitancy among fresh investors who may perceive INJ as too volatile or high-risk under current conditions.
Accumulation Trends Signal Confidence Among Investors
Despite the sell-off from returning users, both DeFi and traditional investors have seized the dip as a buying opportunity. Combined, they have accumulated approximately $1.36 million worth of INJ over the past 24 hours.
DeFi participants alone accounted for $520,000 in purchases, channeling their newly acquired tokens into liquidity pools. This activity has directly contributed to an increase in Injective’s Total Value Locked (TVL), which rose from $33.9 million to $34.42 million during the period.
In parallel, non-DeFi accumulation has remained robust. Data from Spot Exchange Netflow shows that $840,000 worth of INJ was withdrawn from centralized exchanges, suggesting that many traders are moving their holdings into private wallets, potentially signaling longer-term investment intentions.
What Lies Ahead for INJ?
The current market landscape presents a complex mix of bearish pressure and bullish accumulation. To assess the potential next move, AMBCrypto analyzed the Liquidation Heatmap — a tool that tracks liquidity clusters that could influence price movement.
According to the heatmap, a notable liquidity pocket sits above current price levels, indicating the potential for a short-term rally toward $11. However, the most significant liquidity concentration lies around $10.10, highlighted by the yellow Supertrend line.
If INJ continues to follow historical trading patterns, there remains a reasonable chance of a rebound toward this key level, even as profit-taking by veteran holders continues to weigh on short-term sentiment.
