1INCH — Decisive Moment — Back Into The Uptrend Channel?
So, here's an interesting one — please read carefully.
$1INCH flashed an overbought RSI signal on the daily chart today. As you can see on the backtests, the signal is usually highly reliable — at least for 2-5% gains and a reasonable probability for 10% and more.
However, I wouldn't go for a short trade. Here's why and what I would alternatively:
➡️ 1INCH hit the overbought territories very slightly and quickly returned to the neutral area.
➡️ The chart shows that 1INCH got rejected when trying to re-enter its long-term upward channel simultaneously.
➡️ As a result, we saw a 6% dip.
Since most of the oversold momentum indicators have already returned to neutral, I don't expect much more selling pressure.
Instead, I would assume a second test of the long-term trend. If we see another rejection, we will likely see a more significant pullback. However, if the resistance falls, opening a long position would be an excellent moment.
