Key Takeaways
Why is 1INCH up today?
The price of 1INCH rose due to team purchases, network activity, and whale orders.
Will the breakout hold?
The altcoin could maintain the bullish momentum only if it managed to stay above the $0.20 level.
The price action of 1inch [1INCH] rose by more than 29% since the team bought from Binance. However, at the time of writing, the gains had decreased to 17% following an immediate rejection at the level above $0.20.
The team’s buy was not the only driver of this surge; network activity also played a part.
Key catalysts in the trend
As per data from Arkham, the 1INCH team investment fund splashed $5 million on Binance to go long on the token. The buy was executed at $0.15, thus pushing the price back above $0.20, which represented an uptick of 29%.
The organization has consistently made similar investments, as historical data indicates that their actions influenced the price increase from $0.24 to $0.53 late last year. Whether the buy volume can continue driving prices higher remains uncertain.
Additionally, a spike in transaction counts in the past day fueled the altcoin’s surge. Transactions rose from 1K to 4.8K, indicating strong network activity.
Source: CryptoQuant
Moreover, the number of active addresses spiked from a low of 324 on the 2nd of November to a high of 551, at press time. All these correlated directly with price action delivery, which was to the upside.
What’s needed for the price?
On the charts, 1INCH price reversed from $0.15 and broke above $0.20, but this trajectory did not last. Despite this, the MACD maintained its bullish outlook. The Money Flow Index (MFI) traded above 82 as of writing.
The two indicators suggested that buyers were dominant, although the size of the displayed bars indicated limited strength. This could be a reason the move was not sustained.
Looking forward, 1INCH’s sustained uptrend depended on staying above $0.20 to hit $0.30. Bulls potentially stayed away due to its failure to break the structure.
In the meantime, breaching the support at $0.15 could lead to a drop to $0.10, the low of the October 10th crash.
Source: TradingView
The instant rejection above $0.20 could mean potential profit-taking by the team.
Buyers eye the upper levels
The cumulative long liquidation leverage was slightly above that of shorts, with a difference of around $790K per CoinGlass data. This indicated that buyers were in control even though price action was weakening.
The liquidation heatmap showed that the most important level was at $0.1897, with the highest concentration in the past 24 hours. In case the price grabs this liquidity, chances of a move back above $0.20 would increase.
The uppermost liquidity cluster was at $0.2260.
Source: CoinGlass
On the other hand, there was less liquidity beneath current price action, suggesting very few to no orders.
In conclusion, 1INCH was up due to the team’s purchase and network activity, but its price structure was not convincing. A clear structural break was needed to embark on an upward move.
