Wednesday saw a significant downturn in the cryptocurrency market, with Coinglass data reporting liquidations totaling almost $200 million. Despite this widespread decline, 1inch [1INCH] managed to defy the odds by registering a 3% increase in the past 24 hours.
At the time of this writing, 1INCH was trading at $0.241, having bounced back from an all-time low of $0.214 during the market downturn.
Strategic Moves by the 1inch Team
Amidst the record low price, influential investors, notably the 1inch Investment Fund, showed interest in acquiring 1INCH tokens. SpotOnChain data revealed that the team invested $1.75 million in USDC to purchase 7.96 million 1INCH tokens near the all-time low.
Over the past two months, the team has invested $5.5 million to repurchase 1INCH tokens at an average price of $0.245. Historical trends indicate that the team tends to acquire assets at low prices before capitalizing on higher selling opportunities.
This strategic move caught the attention of investors, leading to reduced selling activity on exchanges. Recent data from CryptoQuant indicates a notable increase in exchange netflows, suggesting that fewer holders are looking to sell their tokens in the short term.
Positive Market Indicators
Several positive market indicators suggest the potential for continued growth for 1INCH.
The Chaikin Money Flow (CMF) indicator has displayed a surge in buying momentum on the daily chart, transitioning from negative to positive territory. This shift signals bullish control over the token’s price movements.
Furthermore, the On Balance Volume (OBV) has risen from 815 million to 854 million, indicating robust buying pressure that could lead to further price appreciation.
1INCH is currently testing a breakout above a descending parallel channel, and a sustained breach supported by consecutive positive price candles could confirm a significant uptrend. Market optimism and increased buying activity may drive 1INCH towards a crucial resistance level at $0.43.
The recent price volatility in 1INCH has piqued interest in the futures market, with Coinglass reporting a weekly high of $216,000 in liquidations.
Additionally, 1INCH’s Open Interest surged by 47% over the last 24 hours, climbing from $14 million to $22 million, reaching levels not seen since late June.
Funding Rates have also turned positive, indicating a bullish sentiment among traders in the market.