- 1INCH price reached $0.22, suffering from weak buying interest at support lines.
- For any serious recovery, traders have to see the price move above the level of $0.26. ]
- Traders need a move above $0.26 to confirm any strong recovery.
At present, the 1INCH/USDT perpetual contract has been exchanging hands at $0.2242, marking 7.51% decline in value while price falls into a big support zone. As pointed by analyst Ali (@ali_charts), the possibility exists to break out from a parallel channel, with $0.092 being the targeted price if the breakdown process continues.
The structure of the chart suggests that 1INCH has had much testing nearer to the lower boundary and will determine the next actions that will be taken for the case concerning the price reaction on this level. If no buyers enter, the next risk for the token would be a fall toward the next significant support zone, thus continuing the established bearish trend from mid-2023.
Price Tests Lower Bound of a Parallel Channel
The chart demonstrates how 1INCH has been trading in a nicely defined parallel channel, with repeated price actions at the upper and lower trendlines. The latest rejection from the upper resistance about $0.42 triggered further selling pressure, with the price dropping back toward the lower boundary at $0.22.
History has shown that similar setups stimulate strong rebounds anytime buyers take control, but should this structure fail, a much deeper correction could ensue. The next support level is around $0.19, whereas total breakdown will take the token to about $0.092, a previous downward extension.
The technical outlook for 1INCH remains very spotty, with price not managing to hold above previous support zones. The multi-month downtrend continues with a series of lower highs and lower lows forming every other week since early 2023. There have been a couple of near-term rebounds, but each has failed to gain traction, only resulting in further declines. The current attempt at breakdown takes place just like the previous bearish cycles, thus making the support level at $0.22 a critical zone under observation. Should buyers fail to resupply price back within the channel, they shall see further losses intensifying and finally targeting the last support zone at $0.092.
Appraisal of the Market for the Reversal or Continues Downward Decline
Next few sessions of trading will be decisive in determining whether 1INCH is able to hold above $0.22 or sags to lower levels pushed by sellers. Likely, the immediate price direction will be determined greatly by the overall sentiment trend of the market and volume flow. Therefore, traders will be on the lookout for possible signs of a reversal or continued bearish pressure.
Reclaiming the price of $0.26 may suggest renewed strength; otherwise, further downsides may be expected. With the technical indicators also collapsing on the decline into the downtrend movement of 1INCH, there’s a lot at this moment that could decide next serious movement by this token.
