During Wednesday’s cryptocurrency market turmoil that led to almost $200M in liquidations, 1inch [1INCH] managed to defy the odds with a 3% rebound over the past 24 hours.
As of this writing, 1INCH was trading at $0.241, bouncing back from an all-time low of $0.214 amidst a broader market decline.
Strategic Purchases by 1inch Team
Despite the record low, whale interest, particularly from the 1inch Investment Fund, seemed to have been piqued. According to SpotOnChain, the team invested $1.75M in USDC to acquire 7.96M 1INCH tokens near the all-time low.
Over the past two months, the team has allocated $5.5M towards repurchasing 1INCH tokens at an average price of $0.245. Historical patterns indicate a strategy of purchasing at the bottom before selling when the price is high.
The actions of this wallet have ignited curiosity in the token, as exchange data now reveals reduced interest from sellers.
As per CryptoQuant, exchange netflows have surged to their peak in a week – implying more addresses withdrawing tokens from exchanges, with intentions to hold rather than sell in the short term.
Positive Signs Continue to Surface
Additional bullish indicators are emerging, underscoring 1INCH’s potential for further growth.
The Chaikin Money Flow (CMF) indicator displayed increased buying momentum with a notable northward shift on the daily chart. The shift from negative to positive signals a shift in control towards bullish sentiment.
The strengthening uptrend is substantiated by the On Balance Volume (OBV) which escalated from 815M to 854M, indicative of robust buying pressure and the potential for extended gains.
1INCH is presently striving to breach the descending parallel channel. A sustained breakout confirmed by consecutive positive candles would signify a notable uptrend.
A surge in buying pressure, alongside broader market support, may position 1INCH to target a critical resistance level at $0.43.
The recent price volatility in 1INCH has sparked interest in the futures market, with liquidations hitting a weekly high of $216,000 according to Coinglass.
Furthermore, 1INCH’s Open Interest has surged by 47% in the last 24 hours, soaring from $14M to $22M – marking the highest level since late June.
Positive Funding Rates also underpin the bullish sentiment among traders.