1INCHUSDTY Showing signs of strength
Updated
Last time I analysed 1INCH, BTC was at its ATH of 42k and we quickly saw it plummet down. Like most alts, 1INCH followed the pullback but held the 1.00 price level strong with a single touch going sub 1.00. It retraced back into the channel after a couple days breaking every resistance level along the way. Having reached the 2.00 price level before the end of month it is likely we will see further movement upwards. However, there are 2 scenarios we have to take into account.
Since it failed breaking out of the channel, we need to see if it consolidates at the current level, preferably above the middle line of the channel. If it consolidates and further develop the wedge pattern (or bullish pennant), we may see a bullish continuation and retest of the resistance area, if it breaks the resistance, it is likely it will move further upwards. If it fails breaking the resistance at the retest, it is likely it will retrace back into the price channel. Consider taking long positions after a breakout of the bullish pennant/wedge is confirmed or if you're more conservative, after it breaks the resistance area.
If it breaks down from the wedge, it is likely it will retest the 1.50 support area. It is a key area considering that it is the area where the price level will meet the EMA55 and if it does not hold that price level, we'll see it break down further and invalidate the price channel. If it bounces up from the support, it is considered a nice area to accumulate 1INCH and it's likely it will retest the 2.11 resistance. If this scenario plays out, consider taking a long position after it bounces up from the support, if you're more conservative, you can wait till it breaks the 1.70 resistance after the bounce.
Set stop losses according to your risk management.
Trade safely.
Since it failed breaking out of the channel, we need to see if it consolidates at the current level, preferably above the middle line of the channel. If it consolidates and further develop the wedge pattern (or bullish pennant), we may see a bullish continuation and retest of the resistance area, if it breaks the resistance, it is likely it will move further upwards. If it fails breaking the resistance at the retest, it is likely it will retrace back into the price channel. Consider taking long positions after a breakout of the bullish pennant/wedge is confirmed or if you're more conservative, after it breaks the resistance area.
If it breaks down from the wedge, it is likely it will retest the 1.50 support area. It is a key area considering that it is the area where the price level will meet the EMA55 and if it does not hold that price level, we'll see it break down further and invalidate the price channel. If it bounces up from the support, it is considered a nice area to accumulate 1INCH and it's likely it will retest the 2.11 resistance. If this scenario plays out, consider taking a long position after it bounces up from the support, if you're more conservative, you can wait till it breaks the 1.70 resistance after the bounce.
Set stop losses according to your risk management.
Trade safely.
Note
After BTCs pullback we saw 1INCH drop to the key area level defined on the chart. Everything lower than the 1.56 support level go quickly bought up. It's likely that 1INCH is going for another retest of the resistance area.Trade closed: target reached
TP @ 2.25 ~450% profit 20x lev
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