1 inch break of 3-month resistance line, new uptrend started?

1 inch is likely to have completed a long-term correction after the January 24 rally, which will be confirmed if the price recovers to the $2.20 zone.

Important price zone

1 INCH has been falling since October 27th when it peaked at $7.77. This is a slightly lower high than the May 8th all-time high. This created a long wick above it, after which the token fell significantly.

It has so far fallen as low as $1.42 on Jan. 24th. It then rallied slightly after that and has since gained 1 INCH.

The price is approaching the $2.20 zone, which previously acted as a support since May 2021. A recapture of this zone will go a long way in confirming that the trend is bullish.

Daily 1-inch/USDT chart | Source: TradingView

Current movement

A closer look shows that 1 INCH has broken above the descending resistance line that has been in place since the above high.

In addition, the technical indicators are giving bullish signals. This is particularly evident from the significant bullish divergence that has formed in the MACD. Such pronounced bullish divergence very often precedes a bullish trend reversal.

In addition, the RSI has also moved above 50. The RSI is a momentum indicator and values ​​above 50 are considered bullish.

As a result, the daily timeframe technical indicators are suggesting that 1 INCH is bullish and the token will eventually reclaim the $2.20 horizontal resistance area.

Daily 1-inch/USDT chart | Source: TradingView

Count waves

Trader @Ewfib tweeted a chart of 1 inch and explained that the token has completed a flat corrective structure.

The source: Twitter

The number of waves most likely to occur indicates that 1 INCH has completed a flat correction structure where the A:C wave has an exactly 1:1 ratio. This is the most common of the structures.

Alternatively, all movement since May’s all-time high could be contained within a descending parallel channel. The January 24 low served to confirm the support line of this channel.

If true, 1INCH has started a fresh bullish impulse that will take it to new all-time highs and above.

Daily 1-inch/USDT chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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