1 inch (1 inch) has potentially completed its long-term correction after the bounce on January 24. This will be confirmed by a retest of the $2.20 horizontal zone.
1INCH has been declining since October 27, when it reached a high of $7.77. It was a slightly lower high relative to the all-time high of May 8. This formed a long upper wick, after which the coin dropped significantly.
So far, it has reached a low of $1.42, doing so on January 24th. Later a minor uptrend started and since then 1INCH has been moving upwards.
It is approaching the $2.20 area, which previously acted as support since May 2021. Its recovery will go a long way in confirming that the trend is now bullish.
current movement
A closer look shows that 1INCH has broken above a descending resistance line that it had since the above high.
Besides, the technical indicators are showing bullish signs. This is especially visible in the significant bullish divergence developing in the MACD. Such a clear bullish divergence often precedes a reversal of a bullish trend.
Moreover, the RSI has also moved above 50. The RSI is a momentum indicator, and a reading above 50 is considered bullish.
Therefore, technical indicators on the daily time frame suggest that the 1INCH trend is bullish, and the coin will eventually reclaim the $1.22 horizontal resistance area.
1INCH Waveform Count Analysis
cryptocurrency trader @Ewfib Tweeted a chart from 1INCH, which states that the coin has completed a flat corrective formation.
The most likely wave count indicates that 1INCH has completed a flat corrective structure, with an exact 1:1 ratio of waves A:C. This is the most common ration in such structures.
Furthermore, the entire movement since May’s all-time high could be contained inside a descending parallel channel. The January 24 lows acted as a validation line for this channel.
If true, 1INCH has started a new bullish rally that will take it to a new all-time high price and beyond.
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