1INCH with buying potential before a 20% increase, says trader

The price of 1INCH cryptocurrency has fallen in the last day. However, according to analyst Aaryamann Shrivastava, there are promising signs of a potential recovery.

After a 15% rally since Tuesday, a pullback in price to the $0.471 to $0.443 range could offer a buying opportunity for investors. According to the analyst, on-chain metrics and open interest data suggest that this area is an important support zone, from where prices could rise by 20%.

Data from CoinGlass also shows that open interest in 1INCH futures on exchanges is increasing. Open interest indicates the total number of open derivative contracts that have not yet been settled and whether the flow of money into the contracts is increasing or decreasing.

“Increases in open interest represent new or additional money coming into the market and new purchases happening, which is an upward trend,” explained Shrivastava. “When open interest decreases, it is usually a sign that the market is selling off. In other words, more investors are exiting and the current price trend is ending.”

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According to the analyst, the chart shows that open interest in the cryptocurrency increased from US$17.54 million on May 24th to US$32.53 million on May 30th. This indicates that new money is entering the market and new purchases are taking place. A similar trend occurred in the upward price movement from February 26th to March 16th.

He points out that 1INCH price broke the $0.443 resistance level on Tuesday and has risen 17% since then. Due to this sharp upward move, buyers may pause, leading to a pullback.

“Investors looking for buying opportunities can find a good entry into the support zone between $0.471 and $0.443. This zone coincides with the 200-day exponential moving average (EMA) at $0.439. Assuming 1INCH price bounces from the $0.471 level, it could rise 20% to the 61.8% Fibonacci retracement level at $0.560.”

The Relative Strength (RSI) and Awesome Oscillator (AO) indicators support the aforementioned bounce, being firmly above their respective average values ​​of 50 and 0. These momentum indicators signal that buyers are in control.

“If the bullish outlook persists above $0.560, the cryptocurrency could extend the rally by 25% to retest the 100% Fibonacci retracement level at $0.704,” concluded the analyst.