1INCH price shows promise for a potential rally

31 May

The 1INCH (1INCH) price is likely to face a pullback after rallying 15% since Tuesday, but a price decline towards $0.471-$0.443 could provide an opportunity for sidelined buyers. The price rally is fueled by rising Open Interest, which indicates the total number of outstanding derivative contracts and whether money flows into the contract are increasing or decreasing.

The 1INCH price broke the resistance level at $0.443 on Tuesday and has rallied 17% since then. If the price bounces off the $0.471 level, it could rally 20% to the 61.8% Fibonacci retracement level (plotted from the March 13 high of 0.704 to the April 13 low of 0.327) at $0.560.

Santiment's Supply on Exchanges index shows 1INCH tokens available on centralized platforms plummeted from roughly $117 million to $94 million from May 28 to 30. This 19% drop in tokens held on exchanges indicates that investors are confident in 1INCH price performance and are not looking to sell.

If the daily candlestick closes below the weekly support at $0.327, 1INCH price will form a lower low in the higher time frame, indicating a bearish market structure. Thus, the bullish thesis would be invalidated, triggering a potential crash to $0.275, roughly 16% away from $0.327.