Injective (INJ) has plunged roughly 95% from its $52.62 all-time high, now hovering near $3 and testing a pivotal long-term support zone.
According to the crypto analyst Crypto Patel, the steep correction has pushed the price into a high-timeframe fair value gap, an area traders often associate with institutional accumulation and potential structural reversals during broader crypto market cycle resets.
Crypto Patel also points out the range of $2.70 to $1.70 as an important accumulation range where buyers might return. However, a close below $1.10 on high timeframes can negate the bull case and open up further downside risks. Trading above this threshold maintains the potential for a recovery pattern on the charts.
Also Read: Injective (INJ) Holds Channel Support – Wedge Breakout Could Target $25
INJ Volatility Compression Hints at Major Move to $200
For instance, market players have been referencing the last time it witnessed a similar kind of price decline, which ultimately resulted in a staggering price gain of 4,619%.
Although past performance is not indicative of future performance, the similar pattern has revived the debate that the current squeeze in volatility will soon give way to directional expansion.
Source: Crypto Patel’s X Post
If the buyers take charge once again, then the bullish projections are directed towards reaching bold targets, which are in the range of $80 to $200 on the macro scale.
However, reaching these targets depends on steady accumulation, increased ecosystem activities, and an overall strong crypto environment. Currently, the token is stuck at a critical point, and the next breakout is expected to establish the trajectory.
Technical Indicators Point to Improving Momentum
According to TradingView, currently, the RSI (14) stands at 43.15. It can be said that the asset is in a neutral zone. This shows that the asset is recovering from its oversold position in early February.
It should be noted that the asset is still below the 50.00 level. The bears are still in charge. Currently, the asset is in a flat position.
Source: TradingView
The MACD shows a cautious bullish crossover as the blue line moves up and crosses over the orange line. The histogram is rising with increasing green bars, and even though the lines are still well below the zero mark, it is a sign that the downtrend is slowing and will eventually change direction.
Also Read: Is Injective (INJ) Preparing For The Next Big Bull Wave After 95% Decline