$5 Million Investment Boosts 1INCH by 29% – Will the $0.20 Support Hold?

The recent $5 million investment in 1INCH has led to a significant increase in its price, surging over 29%. This rise is attributed not only to the team's purchase but also to heightened network activity. However, despite these gains, 1INCH faces resistance at the $0.20 mark, which is crucial for sustaining momentum.

Key Takeaways

The price of 1INCH has increased due to team investments, network activity, and large orders from whales.
To maintain bullish momentum, 1INCH must stay above the $0.20 level.
Initially, 1INCH's price surged by 29% due to team purchases on Binance but then settled to a 17% gain after facing resistance at $0.20.
Network activity has played a significant role in driving this increase.

1INCH up 17% in a day but faces resistance at $0.20

Key Drivers Behind the Surge

According to data from Arkham, the investment fund associated with the 1INCH team invested $5 million on Binance, which allowed them to go long on the token at the $0.15 mark. This move resulted in a price increase above $0.20, representing a 29% gain. Historically, similar investments have significantly impacted the price, as seen when their actions helped push prices from $0.24 to $0.53 late last year. However, it remains uncertain whether this momentum can continue.

Additionally, an increase in transaction counts from 1,000 to 4,800 in the last day demonstrated strong network engagement, further supporting the token's rise. 1INCH Transactions Source: CryptoQuant

Moreover, active addresses saw a rise, jumping from 324 on November 2nd to 551 at the time of writing. This increase directly correlates with the upward price movement of 1INCH.

What Does 1INCH Need to Thrive?

On the charts, 1INCH initially rebounded from $0.15 and surpassed the $0.20 mark but struggled to maintain this uptrend. Despite these fluctuations, indicators like the MACD still showed a bullish outlook, and the Money Flow Index (MFI) was trading above 82 at the time of writing.

These indicators suggest buyer dominance, albeit with limited strength reflected in the size of the displayed bars. This limited strength may explain why the upward movement couldn't be sustained. For 1INCH to continue climbing, it is crucial for it to hold above the $0.20 level to reach $0.30. The hesitation from buyers may be linked to the failure to break through this crucial price level.

If the price drops below $0.15, there is a risk of plummeting toward $0.10, which was the low recorded during the crash on October 10th. 1INCH Chart Source: TradingView

The immediate rejection seen above $0.20 could indicate profit-taking by the investment team.

Buyers Focusing on Higher Levels

Recent data from CoinGlass highlights that cumulative long liquidations slightly exceeded those of shorts, with a difference of approximately $790,000. This suggests that buyers are still in control, even as price action appears weaker.

The liquidation heatmap indicates that the critical level to watch is at $0.1897, with substantial liquidity concentration noted in the past 24 hours. If the price taps into this liquidity, the chances of moving back above $0.20 would increase significantly. The highest liquidity cluster is noted at $0.2260. 1INCH Liquidity Source: CoinGlass

On the flip side, there is minimal liquidity below the current price level, implying a lack of buy orders in that region.

In conclusion, while 1INCH has benefited from team investments and robust network activity, its current price structure requires a stronger foundation. A definitive break above key levels is essential for substantial upward momentum.