1INCH investors celebrating these updates should still remain vigilant because…

  • 1INCH’s proposal for the total overhaul of 1INCH tokenomics and incentivized staking went live
  • 1INCH’s price action could need a nudge from investors in the days to come

1inch Network [1INCH] was in the limelight once again as it made it to the list of the top 6 Optimism dApps in 2022. These dApps are measured by their number of transactions and fees generated.

Not only that, but a major proposal for the total overhaul of 1INCH tokenomics and incentivized staking went live recently.

Read 1INCH’s Price Prediction 2023-24

This was an optimistic announcement as it brought several new features with it. For instance, with the Staking Pod system, users can lock their 1INCH tokens in a staking contract to get st1INCH tokens.

Interestingly, the longer the lock period, the more st1INCH tokens the user gets. Stakers can use st1INCH tokens for 1inch DAO governance, and the 1inch DAO can use these token balances for reward distribution.

The good news was that soon after this, 1INCH also became one of the top gainers in the Avalanche ecosystem in the last 24-hours. 

Is everything going well?

Though 1INCH was one of the top gainers in the Avalanche ecosystem, its weekly price action was not at par. According to CoinMarketCap data, the price of 1INCH has dropped nearly 10% in the last week.

Furthermore, at the time of writing, it was trading at $0.3989 with a market capitalization of more than $305 million. Let’s have a look at 1INCH’s on-chain metrics to find out what was actually going on. 

How many 1INCH’s can you get for $1?

According to CryptoQuant’s data, 1INCH’s exchange netflow was high as compared to the past seven days. This could be considered as a bearish signal as it indicated higher selling pressure. The total number of transactions also registered a decrease, reflecting a lower number of users in the network. 

Apart from that, the metrics looked positive for 1INCH as the network’s positive sentiment spiked last week. Furthermore, 1INCH’s Market Value to Realized Value (MVRV) Ratio also registered a slight spike.

The network’s development activity and Binance funding rate also went up recently, which further provided hope to the investors.

Source: Santiment

Where’s the danger?

Quite the contrary to most metrics, 1INCH’s daily chart suggested that the bears were controlling the market. 1INCH’s Chaikin Money Flow (CMF) and On Balance Volume (OBV) were considerably low, proving a bearish advantage.

The Exponential Moving Average (EMA) Ribbon also told a similar story. The 20-day EMA was resting below the 55-day EMA. Nonetheless, the Moving Average Convergence Divergence (MACD) provided the much-needed relief as it displayed the possibility of a bullish crossover. Thus, this could help 1INCH increase its value in the days to come. 

Source: TradingView