1INCH is poised for a breakout as the bullish trend begins to take shape.

Currently, the price of 1inch (1INCH) is fluctuating within a falling wedge pattern on the daily chart, around the threshold of 0.257 USD as of Wednesday. Once the price breaks above this pattern, the trend is likely to lean towards the bulls. The positive outlook is further reinforced as a section of investors takes the opportunity to accumulate more 1INCH during recent pullbacks, while the trading volume is also on the rise. Current technical indicators are signaling optimism, indicating that the bullish momentum is becoming increasingly strong.

On-chain data and derivatives indicate a bullish trend

According to Supply Distribution data from Santiment, the bullish outlook for 1INCH is being reinforced as many large investors take the opportunity to accumulate during the price correction.

Specifically, the wallet group holding between 100,000 – 1 million tokens (red line) along with the group of 1 million – 10 million tokens (yellow line) bought a net of about 10.27 million tokens just in two days on Tuesday and Wednesday. In contrast, the "whale" group holding between 10 million – 100 million tokens (blue line) sold about 10.49 million tokens. This trend suggests that a segment of large investors may have been forced to accept a loss, while smaller wallets quickly seized the opportunity to accumulate at discounted prices.

1INCH Supply Distribution Chart | Source: SantimentAdditionally, the liquidity and interest from traders in 1INCH are surging. Data from Santiment shows that the trading volume of this token skyrocketed from 13.35 million USD on Tuesday to 64.04 million USD on Wednesday – the highest level since August 20.

The trading volume chart of 1inch | Source: SantimentIn the derivatives sector, the optimistic sentiment is becoming increasingly evident. The chart from CoinGlass recorded the long/short ratio of 1INCH reaching 1.08 on Wednesday, approaching the monthly peak, reflecting bullish expectations prevailing in the trading community.

1INCH long/short ratio chart | Source: Coinglass## 1INCH price forecast: Bulls targeting a breakout

The price of 1inch (1INCH) is currently moving within a falling wedge pattern formed since early August, with successive highs and lows connected by two converging trend lines. At the time of writing on Wednesday, the token is trading around 0.257 USD, nearing the upper resistance line.

If it successfully breaks above the pattern, 1INCH could trigger a new bullish wave, expanding about 20% from the current level to test the important resistance zone on the daily chart at 0.307 USD.

Daily chart of 1INCH/USDT | Source: TradingViewTechnical indicators are also supporting the bullish outlook: RSI on the daily chart is at 54 – above the neutral threshold of 50, indicating that buying pressure is prevailing; meanwhile, the MACD indicator just formed a bullish cross on Wednesday, signaling a buy and suggesting the possibility of an upward trend.

However, in the event of a correction, 1INCH may still return to test the strong support zone around 0.234 USD on the weekly chart.

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