1INCH has surged 16% over the past day, raising the possibility of a fresh YTD high.
If bullish momentum continues, 1INCH could break out above $1.
Sellers may target $0.48 if the rally fizzles out.
1INCH (1INCH) has seen a notable surge on Thursday, lifting its price by more than 10% in the 24-hour period. This marks the biggest gain of the year so far, and traders are now eyeing a breakout above $1.
At 8:45am ET on Thursday, 1INCH was trading at its highest level since 1 March, and the last 24 hours have been the most bullish since 21 February 2021.
Can 1INCH break out to a new YTD high?
The climb from Monday’s low of $0.48 has the 1INCH/USD pair just shy of the $0.60 resistance level, with technicals suggesting bulls have gained control. The bullish breakout is reflected in a 4% green candle on the hourly chart, and prices of major coins are reclaiming key levels.
A look at market data shows huge open interest for 1INCH. If the upward momentum is sustained, a breakout above $0.60 could see the 1INCH token aim for the next major resistance zone near $0.68.
The psychological $1 level is a key area of focus in the short term, especially as 1INCH reached its all-time high of $8.65 in October 2021.
What could trigger a bearish reversal?
At current prices, some investors may be looking to take profits. The bearish scenario could be triggered if the support at the 100 day simple moving average is broken. This is further suggested by the upward sloping RSI, which is edging towards the overbought territory.
In such a case, a breakdown at $0.48 would risk further losses to the $0.43 area.