Will whales have a 1INCH sale after 100% growth?
Date: 2023-07-17 Author: Karina Ziganova Categories: BUSINESS
The price of the native token 1inch Network has skyrocketed by 102% in the last 30 days. However, the readings of key on-chain metrics hint that this is not the limit.
1INCH is the governance token of the leading aggregator of decentralized exchanges (DEXs) 1inch Network. The Ethereum-based protocol is designed to increase the liquidity of cryptocurrency trades and reduce slippage by aggregating liquidity from various decentralized platforms.
Since the beginning of 2023, the number of 1INCH users has increased markedly, which has had a positive impact on the price of the token.
The activity of 1NCH users is growing
According to the analytical platform Santiment, between July 9 and July 17, the number of daily active users of 1INCH increased from 276 to 1003.
The Daily Active Users metric evaluates changes in network activity in real time by summing up the addresses of wallets that carry out transactions. The growth of this indicator over a long period of time, as a rule, puts upward pressure on the price of the asset.
As you can see in the chart above, 1INCH quotes soared by 90% over the same period. Further growth in the number of active users is likely to prolong the price rally.
The demand of large investors was the catalyst for the rally
On-chain metrics report that one of the main factors behind the continued rise in the price of 1INCH has been the demand from large investors. According to IntoTheBlock, over the past 3 trading days, the number of transactions exceeding $100,000 has doubled: on July 12, whales conducted only 8 transactions, And not the closing time of trading on July 16 - already 50.
The screenshot below shows how a major investor transferred 7 million tokens worth about $3.5 million to Binance on Monday, July 17. Usually, such actions are perceived as a serious bearish signal, foreshadowing a sale.
However, given the current level of demand, the bulls should have enough reserves to absorb this massive order.
1INCH bulls will strive to defend the $0.45 mark
In the coming weeks, the price of 1INCH is likely to return to the $0.60 mark. However, with a growing number of holders looking to take profits, the asset will first have to defend the $0.45 support level. At this mark there are 2420 addresses that purchased 56 million tokens at an average price of $0.43.
In the event of a fall below $0.45, the initiative will go to the bears, which will provoke a further fall in the direction of $0.35. However, 7,000 wallets that bought 352 million 1INCH at a maximum price of $0.41 can slow down or even stop the downward movement.
