Key Takeaways
One inch is a bearish price structure and a downward trend. Although the sellers appeared to be in control, the price may have reached a local low and may be ready for the possibility of a rebound.
1inch [1INCH] saw a 40.7% price retracement from 13 July to 2 August. This took 1INCH from the $0.391 swing high to the $0.232 swing low.
However, the more time-bound market structure has been positive, despite the price decline.
Source: 1INCH/USDT on TradingView
It is encouraging for investors who are looking to invest long-term, the retracement has brought 1 inch token prices to levels which was a resistance in May. The return to the $0.24-zone as a support level in the last few days is a good indicator for investors, and could be an excellent opportunity to buy.
However, the technical indicators, which are slow by nature however, were not in agreement. The CMF stood at -0.26, which reflects the high market pressure for 1INCH over the last two weeks. The A/D line remained in a flat position over the past 10 days, contrasting with the CMF and demonstrating that selling pressure was less.
The MACD was in line with that bearish structure of the market, and also highlighted an intense downward momentum. The indicators studied did not suggest the possibility of a trend change, but the price action offered clues to one. What are data on chains provide?
A steady accumulation and muted sentiment indicate 1 inch bullishness
Source: Santiment
AMBCrypto determined that the sentiment weighted by the index was negative, and it has been throughout the second quarter of July. The funding rate dropped briefly to negative territory on the 3rd of August, but quickly rebounded. The decline in the Open Interest also underlined bearish sentiment in the market for derivatives.
Together, they showed that social media usage was negative, and traders who were speculative preferred to stay out of the markets. This alone doesn’t justify the purchase. However, the addition of average coin’s age alters the image.
The average age of coins fell off a cliff between the end of June until mid-July. This signaled a lot of trading on the chain and profit-taking. In the last 2 weeks, the median coins’ age has been increasing to reflect the accumulation across the network.
The likelihood of a bullish reversal is increased when you consider the possibility of a retest of the crucial horizontal horizon at $0.24. Investors should be hopeful for the best. Bitcoin [BTChas created an area-wide bottom around $112k on the weekend.
