Injective Price Prediction: INJ becomes attractive to buy after a 20% fall
Source Fxstreet
- Injective price dipped nearly 20%, succumbing to broader market crash on Friday.
- INJ is likely not to be left behind, trapping shorters for breakdown contingent on Bitcoin price showing strength.
- A break and close below $20.00 would invalidate the bullish thesis.
Injective (INJ) price succumbed to the Friday crash that was instigated by Bitcoin price dumping to whiplash hundreds of millions in long and short positions. For late bulls, however, this could be the ideal discounted entry as the BTC halving closes in.
Also Read: Injective price coils up for a breakout after deep 40% correction
Injective price coils up for a rally
Injective price dipped nearly 20% on Friday, clearing the January 3 low of $29.21. The move could be a swift liquidity grab, triggered by large sell orders that quickly absorb available liquidity in the market. Participants may rush to capitalize on perceived opportunities, resulting in rapid price movements and fluctuations in liquidity.
With the Relative Strength Index (RSI) below 30, INJ is already oversold and may be due for a pullback. The likely play incase of a correction would be a flip of the $29.27 blockade into support, followed by a retest of this resistance-support before an extended move to the 50% Fibonacci placeholder at $37.24.
A move beyond $37.24 would encourage more buy orders with the gains likely to see the Injective price extend a neck higher to tag the $45.21. In a highly bullish case, INJ price could clear the aforementioned level to reclaim the $53.00 peak. This would denote a climb of nearly 98% above current levels. The forecasted recovery is contingent on how soon Bitcoin price recovers, and the broader cryptocurrency market with it.
INJ/USDT 1-day chart
On the other hand, if the bears fasten their hands, the Injective price could extend the fall. A drop below the Friday bottom of $22.77 would produce a lower low, invalidating the bullish thesis.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Gold price (XAU/USD) extends the decline to around $4,030 during the early Asian session on Tuesday. The precious metal edges lower as traders dialed back expectations of a US interest rate cut next month.
