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**1inch Price Prediction: Bearish Indicators, Yes, But Is a Recovery Coming Soon?**
The recent market downturn has led to a decline in the prices of several cryptocurrencies, including 1inch (1INCH). The bears seem to be gaining strength, but is this just a temporary setback or are we seeing a long-term reversal? In this article, we’ll dive into the latest indicators and on-chain metrics to predict whether 1inch’s value will recover soon.
As of late, the market has shown an unrelenting bearish trend. The charts have confirmed that 1INCH has been trading within a downward trajectory since mid-July, fueled by intense selling pressure. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both signaling a strong negative momentum, implying further price drops in the near future.
The MACD’s moving average, specifically, is suggesting that we might not have reached the end of this bearish cycle. However, it is essential to note that technical indicators can be lagging and do not always reflect real-time market movements. This means that they may not capture the sudden changes that could occur in a short period.
On-chain metrics, on the other hand, paint a slightly more optimistic picture for 1INCH investors. The weighted sentiment on social media platforms has remained consistently bearish, indicating that traders are wary of investing at these levels. Additionally, the funding rate dipped briefly into negative territory earlier this month but quickly recovered, which is an indication that long positions in perpetual swaps have been unwound.
The falling Open Interest and the negative sentiment further emphasize this bearish sentiment in the derivatives market. When we combine these indicators with the recent price action, it’s becoming increasingly clear that traders are hesitant to buy into the market, causing a lack of demand.
Now, let’s focus on the mean coin age metric. Despite the current uncertainty, there is evidence of steady accumulation taking place within the network. A significant increase in mean coin age over the past two weeks suggests that investors might have started accumulating 1INCH tokens at these lower levels. This could potentially lead to a short-term rebound.
The combination of the falling Open Interest and the increasing mean coin age presents an intriguing scenario for the cryptocurrency’s future trajectory. Although the overall market is still in a state of turmoil, it can be argued that we might be witnessing the early stages of a reversal.
**1inch Price Prediction: What Can We Expect?**
While the bearish indicators are undoubtedly concerning, there may be hope on the horizon. As 1INCH prices retest the $0.24 zone as support, investors should keep an eye out for any potential buy signals or bullish trends that might form in this region.
Source: ambcrypto.com
