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- Investment fund 1inch spent $1.75 million to buy 1INCH after the token plunged to record lows.
- 1INCH has since rebounded, with on-chain and technical indicators showing an influx of buyers.
The cryptocurrency market witnessed a bloodbath on Wednesday, with liquidations reaching nearly $200 million, according to Coin glass However, 1inch (1INCH) defied the odds, as it rebounded 3% over the past 24 hours.
At the time of writing, 1INCH was trading at $0.241. The token has rebounded from an all-time low of $0.214 as the rest of the market crashed.
1inch Team Buys the Bottom
The record low price appears to have attracted interest from whales, especially the 1-inch one.
Funds. According to SpotOnChain, this team spent $1.75 million in USDC to purchase 7.96 million 1INCH tokens near the all-time low.
Over the past two months, this team has spent $5.5 million buying back 1INCH tokens at an average price of $0.245. Past trends show that the team tends to buy low before selling high.
Source: X
The behavior of this wallet has sparked interest in the token, and exchange data now shows that fewer investors are interested in selling.
CryptoQuant’s net exchange flows hit their highest level in a week, indicating that more addresses are withdrawing their tokens from exchanges and may not sell in the near term.
Source: CryptoQuant
New bullish signals emerge
Further bullish signals have emerged, showing 1INCH’s ability to extend its gains.
The Chaikin Money Flow (CMF) indicator showed an increase in buying activity after making a sharp move higher on the daily chart. It also flipped from negative to positive, indicating that the bulls are now in control.
The uptrend is also supported by the on-balance volume (OBV), which increased from 815 million to 854 million, indicating that buying pressure is strong and gains could extend.
Source: TradingView
1INCH is also attempting a breakout above the descending parallel channel. A significant uptrend will be confirmed if this breakout is supported by consecutive green candles.
Increased buying pressure supported by the broader market could also see 1INCH target a critical resistance level at $0.43.
Recent volatility in 1INCH price has sparked interest in the futures market after liquidations hit a weekly high of $216,000 per Coinglass.
Read 1inch (1INCH) price prediction for 2024-2025
1INCH’s open interest has also jumped 47% in the past 24 hours, from $14 million to $22 million, and is at its highest level since late June.
Source: Coinglass
Funding rates also turned positive, which also showed bullish sentiment among traders.
