1inch Token Surges 85% in July Amid Bullish Market Structure

1inch, a decentralized exchange aggregator, saw its token surge by 85% in July, marking a significant rally after a period of consolidation between $0.15 and $0.25 from March to June. The rally gained momentum on June 11th, with a high trading volume of 186.76 million 1inch tokens traded on Binance, equivalent to $58.8 million. This breakout past the $0.25 resistance level indicated a genuine rally rather than a liquidity hunt.

The rally was further fueled by news that the 1inch team had aggressively purchased 37.3 million tokens for $7.5 million, signaling potential further acquisitions. The market structure on the 1-day chart remained strongly bullish, with the breakout past a series of lower highs since May, peaking at $0.25, indicating decisive bullish intent. The high trading volume in July led to a surge in the On-Balance Volume (OBV), reaching new highs for the year. However, the Relative Strength Index (RSI) on the daily chart was in overbought territory, suggesting a potential short-term price dip. The $0.33 resistance area, which had been a support in late January but flipped to resistance, could be revisited before the next significant pullback.

Data from Santiment indicated that holders were aggressively taking profits. The mean coin age, which had been in a steady uptrend from February to June, cratered in July. This, along with a spike in dormant circulation, suggested intense token movement among long-term holders, likely for selling. The Market Value to Realized Value (MVRV) ratio showed that holders were sitting on substantial profits, making it more likely that the rally could stall in the short term. Despite the high volume supporting further gains, prudent traders might want to wait for a pullback before considering long positions again.

1inch remained firmly bullish and was likely to advance toward the $0.33 resistance zone in the coming days. However, on-chain metrics signaled substantial profit-taking activity, which could pause the rally in the short term. The market structure on the 1-day chart was strongly bullish, with the breakout past the series of lower highs made since May, with their peak at $0.25, marking decisive bullish intent in the market. The high trading volume in July saw the OBV soar higher, making new highs for the year. The RSI on the daily chart was in overbought territory, which was an early sign of a potential short-term price dip. The $0.33 resistance area could be revisited before the next sizeable pullback. This level had been a support in late January, but was flipped to resistance. Traders can look to book partial profits at current market prices and wait for a test of the $0.328 level.