(1INCH) Price Analysis: Downward Correction Likely
$1INCH (1INCH) faces significant resistance, indicating a potential for further downward correction. Here are the key points from the analysis:
1. Rejection by 200-day EMA
- The 1inch price was rejected at the 200-day Exponential Moving Average (EMA) of $0.443 on Thursday.
- This level also coincides with a daily resistance level of $0.446, reinforcing its significance as a resistance point.
2. Price Movement
- Following the rejection, the price of 1inch retraced by 3%, trading around $0.415 during the European session on Friday.
- The inability to break past the 200-day EMA suggests weakness in the upward momentum.
3. On-chain Data
- There is a reported decline in development activity for 1inch.
- Decreased development activity often correlates with negative investor sentiment, potentially leading to reduced confidence and selling pressure.
4. Invalidation of Bearish Thesis
- A daily candlestick close above $0.464 would invalidate the bearish outlook, suggesting a potential reversal and upward movement.
The rejection at the 200-day EMA, combined with declining development activity and negative sentiment, indicates that 1inch is poised for a further downward correction. Traders and investors should watch the $0.446 resistance level closely. If 1inch fails to break this level, further declines are likely. Conversely, a close above $0.464 could shift the sentiment to bullish, suggesting a possible upward trend.