Warning: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
1inch Network does not control much of the decentralized exchange space, however, it was not plagued by large price swings either. Indeed, over longer time frames, the 1INCH token has been in a steady downward trend since mid-November, like most other altcoins. Over the past month, the price has been swinging from $1.54 to $1.25, but yesterday’s price action indicated that this could have changed.
1 INCH – 1H
The $1.55 area has been a supply zone for 1INCH since mid-February. Since then, the $1.55 area (cyan box), as well as the $1.47 mark, have offered significant resistance for the bulls.
These levels were broken the previous trading day when the price broke above these two areas and also broke above the $1.61 level of former resistance. In the hours after press time, a retracement towards the $1.47-$1.55 area can be expected and will likely provide buying opportunities.
Further north, the $1.75 and $1.99-$2 regions can be expected to serve as resistance. A rally towards these areas seemed likely, as the market structure is trending higher after crossing above $1.55.
On the hourly chart, the RSI has been above the neutral 50 level for most of the past week. The Awesome Oscillator was also well above the zero line to reflect strong bullish momentum.
During the same period, the volume of transactions has increased, which means that market participants are seeing the token awakening and positioning themselves accordingly.
The OBV has also steadily increased, which means that the buying volume has exceeded the selling volume. It was inherently bullish for prices.
The market structure was bullish once the $1.556 level broke through, and the indicators also showed momentum and demand was good behind the token’s rally. The $1.47-$1.55 area could be revisited once more in search of demand/liquidity, so traders may look to buy the asset in this area. Well, the take profit targets are $1.75, $1.84, and $1.99-$2.