1INCH is poised for double-digit growth thanks to positive on-chain signals.

1inch (1INCH) is sending out promising bounce back signals, maintaining trading around the 0.243 USD mark on Wednesday afternoon and gradually approaching an important resistance zone. If it surpasses this barrier, the token could trigger a rise to the sky with double-digit amplitude. On-chain data also reinforces the optimistic outlook, indicating a surge in daily transaction volume and active addresses, reflecting the increasing vibrancy of the network. Meanwhile, technical indicators are leaning towards the bulls, opening up opportunities for the market to witness a new breakout.

The on-chain data of 1inch records positive signals

The number of active addresses metric tracked by Santiment – a measure that reflects the activity level of the network – is presenting an optimistic picture for 1INCH. The increase in this metric indicates a growing demand for using blockchain, while the opposite trend usually signals a decline in interest.

With 1INCH, the number of active addresses has risen to the sky, from 267 on Saturday to 551 on Monday – the highest level since mid-July. This is a clear sign that the network is attracting more users, thereby strengthening the positive outlook for the token price.

The daily active address chart for 1inch | Source: Santiment Concurrently, trading volume also recorded a bounce back, reaching 54.28 million USD on Monday, the highest level in nearly two months. This figure reflects the strong recovery of cash flow and the increasingly deep participation from the community.

The daily trading volume chart of 1inch | Source: SantimentNotably, also on Monday, 1inch announced a partnership with Barter – a seasoned player in the DeFi transaction settlement space. This deal paves the way for users to execute swap transactions based on "intent" (intention), optimizing efficiency and significantly reducing costs.

Price Forecast for 1INCH: Technical Indicators Show Weakening Downtrend

The price of 1inch has established an important support zone around the 0.234 USD mark during Monday's trading session and quickly bounced back 3.21% the following day, approaching the strong resistance zone of 0.247 – 0.254 USD. This is a notable confluence zone as it converges all three EMA lines of 50, 100, and 200 days, while also coinciding with the downward trend line in the symmetrical triangle pattern on the daily chart. A decisive breakout through this zone will tilt the balance in favor of the bulls; at the time of writing on ( Wednesday ), 1INCH is fluctuating around 0.243 USD.

If the daily candle closing price is above the 50-day EMA at 0.254 USD, the uptrend could be strengthened, pushing the price towards the 50% Fibonacci retracement level at 0.274 USD ( calculated from the low on June 22 at 0.157 USD to the peak in July at 0.391 USD). Successfully breaking through this zone will open up the prospect of conquering the next resistance at 0.302 USD, corresponding to the Fibonacci level of 61.8%.

Daily chart of 1INCH/USDT | Source: TradingViewRegarding technical indicators, the RSI on the daily timeframe is currently at 45 and is approaching the neutral zone of 50, indicating that selling pressure is gradually weakening. The MACD line and the signal line of the MACD indicator are closing the gap, while the red histogram is shortening, signaling the potential for a bullish crossover in the short term.

On the contrary, if the correction pressure returns, 1INCH is likely to retreat to test the familiar support zone at 0.234 USD.

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