INJ Tests Key Macro Support After 95% Correction From Peak

A prolonged decline in Injective (INJ) has brought the token back to a major higher-timeframe demand zone, creating a structure that traders are closely monitoring for potential trend stabilization.

The latest monthly chart suggests that price has returned to a historically significant support region following one of the deepest drawdowns in its cycle.

According to chart analysis shared by Crypto Patel, INJ has retraced roughly 95% from its all-time high, a decline that has effectively reset much of the prior cycle’s speculative excess.

At the time of the chart snapshot, INJ was trading near $3.07, placing the market directly above a macro support band that previously triggered strong buying activity.

Monthly Order Block Reaction Defines Current Structure

The chart highlights a higher-timeframe order block between approximately $1.78 and $2.45, which previously acted as a demand zone during earlier stages of the market cycle.

Price recently moved into that region and produced a reaction upward, confirming that buyers are still defending the area. Historically, similar reactions from this zone preceded a significant expansion phase.

The previous cycle move highlighted on the chart shows an advance of roughly 4,500%, occurring after price rebounded from the same demand region.

This type of structure often forms when a market undergoes a deep correction, clears excess liquidity, and returns to areas where institutional accumulation previously occurred.

Market Structure Shift Appears on Higher Timeframe

Another element visible on the chart is a Market Structure Shift (MSS) on the macro timeframe. After spending several months trending downward, the reaction from the demand zone has introduced the first signs of potential structural stabilization.

While the broader trend remains under pressure until stronger confirmation appears, the shift suggests that downside momentum may be weakening after the extended correction.

If the current structure holds, the chart indicates that the market could begin transitioning from the accumulation phase toward a longer-term recovery cycle.

Liquidity Levels Above Current Price

The chart also identifies several buy-side liquidity zones above the current market.

These areas represent levels where clusters of stop orders or breakout liquidity may exist, potentially attracting price if momentum builds.

Key upside zones highlighted on the chart include:

• $16.55
• $35.26
• $53.00 (near the previous all-time high)

These levels correspond to major historical resistance regions where previous distribution occurred during the earlier market cycle.

Conditions for a Recovery Scenario

Despite the strong reaction from the demand zone, the chart suggests that confirmation of a broader trend reversal will require additional structure to develop.

Crypto Patel notes that a constructive recovery would likely involve the formation of higher lows on the weekly timeframe, indicating that buyers are gradually stepping in at progressively higher prices.

Pullbacks that maintain this structure could create the type of change in delivery dynamics that traders often look for when assessing whether a market has transitioned from accumulation to expansion.

Market Still in Macro Rebuilding Phase

For now, Injective appears to be navigating the early stages of a potential macro stabilization following a deep cycle reset. The market remains positioned near a critical demand zone that previously triggered strong upward momentum.

If the support structure holds and higher lows begin to form, the chart suggests the possibility of a longer-term recovery path toward higher liquidity zones.

Until that confirmation emerges, the current structure reflects a market attempting to rebuild after one of the largest corrections in its cycle.

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