Assessment of 1INCH’s growth prospects in December

1INCH has steadily decreased in the last few weeks. In the first half of October, the coin rose from under $ 2 to $ 4.50. The price then consolidated rapidly for a week and established a huge green candle on the chart on October 27th. On that day, 1INCH was trading for $ 7.7.

However, the price gradually fell over the next few weeks. At the time of analysis, 1INCH is trading 56% below the above local high.

1 inch / USDT | Source: TradingView

Trend reversal sign

While November was a pretty tough month for this altcoin, that could change in December if the status of most indicators is in favor.

For example, the price DAA divergence started flashing bullish signals on the chart. Historically, the 1INCH price is likely to go up whenever such a deviation occurs. It did so in October when altcoins were making local highs.

The source: mood

The buying momentum is also increasing. The outflows on the stock exchange have risen sharply since mid-November, interestingly, this indicator has reached a multi-week high at the time this report was written.

An increased outflow usually indicates a token migration from exchanges to private wallets and cold storage. In general, the current trend reflects the accumulation of HODLers right now.

The source: mood

Additionally, the number of old users (purple) has been going down since June, however the 1INCH network had over 80,000 old users as of November. That the network can keep old users is a good sign of their trust in the network.

New users (orange) are also increasing at the macro level. As of November 2021, the network has 116,000 new users. Overall, the above data clearly outline a network for sustainable development.

1 inch monthly new / old users | The source: Dune analysis

Ambiguous long-term outlook

The above trends pave the way for 1INCH’s short-term growth, but the long-term outlook doesn’t look so good right now.

The total value of the log shrank in late November, early December, in fact, its current level of $ 43 million is a long way from its February high of $ 2.23 billion.

Overall, the low level of liquidity means that the overall health of DeFi and the credit market on 1INCH is not good.

Total locked | The source: DeFiPulse

In addition, 1INCH takes its DeFi mission very seriously. For example, on December 1, the network completed a $ 175 million funding round. Later, the co-founder of the project, Sergej Kunz, explicitly stated that the main objective of the above event was “to open the door to DeFi”. Kunz also went on to claim that 1INCH wants to make it easier for players to access the DeFi room.

So if everything goes according to plan, the liquidity on the log will definitely go up. Only then can 1INCH maintain its value over the long term.

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