The price of Injective (INJ) experienced a sharp decline on Friday, plummeting by around 20% and reaching its lowest point since early January. This drop was likely triggered by a sudden liquidity grab caused by large sell orders, leading to a rapid absorption of available liquidity in the market.

Despite this decline, the current oversold state of INJ, as indicated by the Relative Strength Index (RSI) being below 30, suggests that a pullback is possible. If a correction does occur, the $29.27 level could be turned into support, potentially leading to a retest of this resistance-turned-support before reaching the $37.24, 50% Fibonacci level.

If the price of INJ manages to break above the $37.24 level, it could encourage more buy orders and potentially lead to gains that could propel the cryptocurrency to as high as $45.21. This would represent a significant increase of approximately 98% over current levels.

However, if the bears maintain control, the price of INJ could continue to fall, potentially dropping below the Friday low of $22.77. This would invalidate the bullish thesis and could result in INJ prices falling below $20.

The projected recovery for INJ will depend on the speed of the Bitcoin price and the broader cryptocurrency market's rebound. As the BTC halving approaches, the current price decline could present an ideal entry level for bulls.