1-Inch Price Surges 34%, But Likely to Retest $0.22

With a massive engulfing candle of a 34% hike, the 1-inch price fails to surpass the 50-day EMA. Will this lead to a drop to $0.22?

Amid the broader market’s intraday recovery on Thursday, the 1-inch toke price jumped with an intense boost in buying pressure. However, the dynamic resistance prolonged the bearish trend for 1-inch.

Will this bullish failure result in a crash back to the $0.22 support level?

The Falling Channel at Play

In the daily chart, the 1-inch price reveals a falling channel pattern, accounting for a 69% drop since March 2024. The downfall resulted in a price drop from $0.7011 to $0.21.

Currently, the altcoin is moving along the descending support trend line and has recently challenged the 50-day EMM. With a bullish engulfing candle of 34.56% jump on September 4, the altcoin undermines the downfall over the last seven days.

1-inch chart TradingView

However, the bullish wave failed to surpass the dynamic resistance, resulting in an intraday pullback of 6.86% before closing at $0.27.

The signal and MACD lines avoid a death cross with the recent bullish engulfing candle, and the bullish histograms resurface. The declining trend in the 50-day and 200-day EMA maintains a bearish alignment.

Why did the 1-inch Surge on Wednesday?

The critical reason behind the 34% jump on Wednesday remains the growing confidence of the 1-inch team. The team has bought 7.6 million 1-inch tokens, accounting for $1.71 million. With the price surge, the altcoin surpassed $0.27 and peaked at $0.292.

Will The 1-inch Token Test $0.22?

Based on the Fibonacci level, the altcoin fails to reach even the 23.60% level at $0.33. With the higher price rejection near the 50-day EMA and a bearish continuation today, the altcoin is unlikely to surpass the dynamic resistance.

Hence, as the intraday candle continues gaining momentum, the downfall will likely hit the $0.22 support level. However, the underlying demand at this crucial level could prolong the sideways shift before the next bullish attempt.

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