Key takeaways
1inch remained firmly bullish and was likely to advance toward the $0.33 resistance zone in the coming days, but on-chain metrics signaled substantial profit-taking activity.
1inch [1INCH] was skyrocketing higher. After a quiet few months from March to June, where the altcoin consolidated in the $0.15-$0.25 zone, 1INCH burst higher on the 11th of June.
Binance saw 186.76 million 1inch tokens traded on that day, a daily trading volume of $58.8 million.
The high trading volume and the breakout past the $0.25 resistance meant that the rally was genuine and not a liquidity hunt.
The move came on the back of news that the 1inch team aggressively bought 37.3 million tokens for $7.5 million, and signaled further purchases ahead.
Profit-taking could pause in 1inch’s rally
Source: 1INCH/USDT on TradingView
The market structure on the 1-day chart was strongly bullish. The breakout past the series of lower highs made since May, with their peak at $0.25, marked decisive bullish intent in the market.
The high trading volume in July saw the OBV soar higher, making new highs for the year.
The RSI on the daily chart was in overbought territory, which was an early sign of a potential short-term price dip. The $0.33 resistance area could be revisited before the next sizeable pullback.
This level had been a support in late January, but was flipped to resistance. Traders can look to book partial profits at current market prices and wait for a test of the $0.328 level.
Data from Santiment suggested holders were aggressively taking profits. The mean coin age had been in a steady uptrend from February to June.
In July, the mean coin age metric cratered, alongside a skyward spike on the dormant circulation. Together, they indicated an intense flurry of token movement among long-term holders, likely for selling.
The MVRV ratio showed holders were staring at hefty profits, making it more likely that the rally could stall in the short-term. The high volume supported further gains.
However, the prudent trader might want to wait for a pullback to look to go long again.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
