Injective's token INJ has fallen nearly 19% in the past 24 hours, with trading volume dropping to $174 million during the same period. The simultaneous decline in price and trading activity reflects a weakening market risk appetite, with funds more inclined to reduce exposure rather than continue chasing higher prices.
Prices and trading volume both weakened.
Based on the market performance presented in the article, this round of decline in INJ is not simply a short-term fluctuation. After the price broke through a key moving average support, sellers continued to dominate the market, while trading volume did not increase but instead decreased further.
In strong markets, rapid pullbacks typically attract bargain hunters. However, this time, INJ did not see a significant return of buying interest. The reduced trading volume indicates that many traders are still on the sidelines, waiting for the market to stabilize first.
- The price has fallen by approximately 19% in the past 24 hours.
- Trading volume fell to $174 million during the same period.
- There was no significant increase in buying volume when prices fell.
The seller still holds the initiative in the short term.
The article argues that the more significant current characteristic is the continued decline in prices and weakening market participation. Until buyers show a clear return, the short-term trend remains weak, with sellers still holding the upper hand.
The article also mentions increased signs of retail trader participation, suggesting that some selling pressure may be coming from retail investors. However, without a significant improvement in overall trading volume, this type of capital is not yet sufficient to change the current situation dominated by larger sell orders.
The market is focused on when the selling pressure will ease.
After a sharp single-day drop, a technical rebound in the INJ is not out of the question. However, the market is currently more focused on whether the selling pressure is starting to ease than on the magnitude of the rebound.
The article points out that INJ is likely to remain under pressure in the short term unless broader crypto market sentiment improves. For bulls, the most crucial signal to watch is a slowdown in selling pressure and a return of buying interest to the market, rather than an immediate breakout.
