1INCH Plunges 15% in Price: What’s Next?


1INCH, the cryptocurrency powering the decentralized exchange (DEX) liquidity aggregating protocol 1inch Network, has seen a 15% drop in its price over the last day, according to CoinGecko. This puts it at the bottom of the list of the top 100 cryptocurrencies by market cap in terms of performance. Crypto markets, in general, are feeling the pressure, with Bitcoin (BTC) dipping back below $30,000 and Ether (ETH) dropping below $1,900.

The 1INCH rally, which resulted in its highest levels since March on Monday, close to $0.60, may have been due to the sudden increase in trading activity. Open interest in 1INCH futures on Binance surged from around $8.6 million last Friday to highs of over $46 million on Monday, as per CoinGlass.com data. This was the highest it had been since late 2021, as traders rushed to take out leveraged positions.

Unfortunately, the spike was short-lived, and the price of 1INCH has since retraced by 40%, trading in the $0.35 area. It is possible that technical buying, which caused the price to break out of its long-term downtrend and the 200-Day Moving Average, may have triggered the sudden pump. Additionally, some have theorised that the rally was a delayed reaction to the positive XRP ruling by a US judge last week.

Regardless of what caused the spike, traders have been left in the dust, with CoinGlass.com reporting that nearly $5 million in futures positions were wiped out on Monday, the highest in at least three months.

The sudden drop in price could have been caused by whale selling, with an account called @lookonchain tweeting on Monday that a 1INCH whale had sent in 7 million 1INCH tokens (worth $3.88 million) to Binance. Whales sending large amounts of tokens to a centralized exchange often results in increased sell pressure and a drop in price. It is possible that speculators may have taken this opportunity to dump their tokens before the whale could push the price lower. It has been suggested that the seller could have been Celsius, a crypto yield platform that liquidated $25 million in altcoins (including 1INCH) on Monday following a court order.

Whatever the cause, the whale token dump has killed the hopes of the 1INCH breaking out of its year-long downtrend. A retest of the yearly lows in the $0.23s is now a possibility.

For traders looking for tokens that may offer better returns, Evil Pepe Coin (EVILPEPE) may be worth considering. Cryptonews.com has identified it as one of 2023’s best presale meme coin opportunities. This is due to it being sold at a super cheap valuation of only slightly more than $2 million, being backed by a powerful marketing team that delivered huge gains for $THUG and $SPONGE, and piggybacking off the virality of the Pepe meme coin mania. The presale has already raised more than $60,000, and the token will be sold out when it hits $1.996 million.

It is important to note that crypto is a high-risk asset class and this article is provided for informational purposes only and should not be taken as investment advice. You could lose all of your capital.

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