1inch (1INCH) has surged significantly. After several months of quiet from March to June, maintaining fluctuations in the price range of $0.15 to $0.25, 1INCH broke out on June 11.
On that day, Binance recorded a trading volume of up to 186.76 million 1inch tokens, equivalent to a trading value of $58.8 million.
High trading volume along with the breakout of the $0.25 resistance level indicates that this price increase is real and not just a liquidity hunting action.
This move comes after the 1inch team heavily purchased 37.3 million tokens for $7.5 million, signaling that there will be further purchases in the future.
1inch may stagnate due to profit-taking.
The market structure on the daily chart shows a strong upward trend. The breakout of the series of lower highs since May, with the highest peak at $0.25, has clearly indicated bullish intent in the market.
High trading volume in July has pulled the OBV (On-Balance Volume) index up sharply, reaching its highest level of the year. On the other hand, the RSI index on the daily chart is in the overbought zone, which is an early sign of a short-term bearish scenario.
Accordingly, the price may retest the resistance area around $0.33 before undergoing another significant correction. This price level was previously a support in late January but has since become resistance. Therefore, traders may consider taking some profits at the current price level and waiting for a retest of the $0.328 area.
Additionally, data from Santiment shows that holders are actively taking profits. The average age indicator of the coin has maintained a steady upward trend from February to June. However, in July, the index dropped sharply, while the number of inactive coins in circulation surged. These two factors imply that long-term holders are moving tokens en masse, likely to sell.
The MVRV ratio indicates that holders are making significant profits, increasing the likelihood of a pause in the price increase in the short term. High trading volume still supports the potential for continued price increase.
However, cautious traders should wait for a correction before deciding to buy back.