Last week, 1 inch outperformed several cryptocurrencies with its largest market cap, gaining more than 4% in 7 days. However, the price movement of the altcoin was not unexpected, as various developments in its ecosystem accelerated its slope. In fact, according to Messari, 1 inch represented over 60% of Synthetix’s trading volume prior to full integration. Kwenta took second place, accounting for 34% of the transfer volume.
– Messari (@MessariCrypto) September 2, 2022
This development also matched the price of 1 inch, as its 7-day chart was painted mostly green. At the time of writing, 1inch was trading at $ 0.6894 with a market cap of $ 400,641,696.
What do the metrics say?
Recently, 1 inch was named the coin of the day in terms of social activity, with its 24-hour social commitment reaching 13.3 million in the rankings. Furthermore, LunarCrush has 1 inch listed in its current top 10 coins on its AltRank list. All these developments, when fused together, add immense value to the 1inch mesh. These may have contributed to an appreciation of the cryptocurrency’s price.
The current top 10 LunarCrush AltRank ™ coins:
– LunarCrush (@LunarCrush) September 2, 2022
Several 1-inch on-chain metrics have also seen positive signs lately. For example, the 1-inch MVRV report noted an uptrend after hitting a low in late August, suggesting a further increase in the price in the coming days. Additionally, the recent price hike was also supported by high volumes, adding to the legitimacy of the surge.
According to CryptoQuant data, 1 inchThe foreign exchange reserve also fell, which is a positive sign as it indicates less selling pressure. The RSI suggested that the market was somewhat neutral, so it could go in any direction.
However, like the RSI, many other metrics were also not conducive to the 1-inch price hike. Total transfer volume and active addresses decreased by 83% and 19% respectively – a bearish signal.
In addition, total net foreign exchange flows of 1 inch were also high compared to the 7-day average, a sign of increased selling pressure. Therefore, the possibility arises that the bears will gain an advantage in the market, which could prevent 1 inch from moving north in the short term.
1 inchThe 4-hour chart also paints an ambiguous picture as market indicators highlight both possibilities. On the one hand, the 20-day EMA was slightly above the 50-day EMA – a bullish sign. On the other hand, the MACD highlighted the possibility of a bearish crossover in the short term, diminishing the chances of a northward breakout in the coming days.
While developments in the 1-inch ecosystem look promising, most on-chain metrics and market indicators suggest that a short-term bullish rally is rather unlikely.