In this edition we welcome back 1INCH from the depths once more as there is still some life left to breathe in this boom of DeFi that is still to come.

1INCH remains a top DeFi project due to its resilient infrastructure, efficient aggregation protocol, and commitment to user experience. Despite challenges, it continues to innovate and adapt, providing unparalleled access to liquidity across decentralized exchanges.

Still alive and kicking

A Strong community and passion for projects

• At 1INCH, community feedback is pivotal, guiding the project's evolution.

• Insights from developers and users alike fuel innovation and drive progress.

• Excitingly, 1INCH is soon unveiling a game-changing feature: cross-chain swaps.

• This innovation will transform DeFi by enabling seamless asset transfers across blockchains.

• Expect enhanced liquidity and accessibility with this groundbreaking addition.

One of the key highlights of Phase 2.0 is the introduction of increased rewards for participants, reflecting 1inch's recognition of the valuable contributions made by community members.

These enhanced rewards serve as a token of appreciation for the time, effort, and creativity invested by individuals and teams in driving adoption, fostering innovation, and enhancing the user experience within the decentralized finance (DeFi) space.

Additionally, Phase 2.0 expands collaboration opportunities for community builders, enabling them to connect with other like-minded individuals and teams, share insights and expertise, and collaborate on impactful projects.

By fostering a collaborative ecosystem, 1inch aims to leverage the diverse skills and perspectives of community members to accelerate the pace of innovation and drive positive change within the DeFi landscape.

Tokenomics and Governance

With a maximum supply of 1,500,000,000 tokens, 1INCH operates on the Ethereum blockchain as an ERC-20 token. Currently, there are 1,145,524,100 tokens in circulation, contributing to a market capitalization of $685,156,488.

This data underscores the token's significance within the decentralized finance ecosystem, highlighting its widespread adoption and value proposition among users and investors alike.

Utility

• Governance: Holders can vote on proposals and decisions related to the protocol.

• Protocol Fees: Used to pay for transaction fees and other protocol operations.

• Liquidity Mining: Users can stake 1INCH tokens to earn rewards in liquidity pools.

• Discounts: Holders may receive discounts on trading fees within the 1inch platform.

• Incentives: Used to incentivize liquidity provision and other ecosystem activities.

1INCH Market Analysis

While 1INCH may appear to be lagging behind other altcoins on technical charts, this discrepancy presents an intriguing opportunity for savvy investors. As the decentralized finance (DeFi) sector continues to gain traction, 1INCH stands as a resilient and promising player, yet to fully realize its potential in terms of percentage gains.

This underperformance, however, should not be misconstrued as a lack of value. On the contrary, it presents an attractive entry point for investors seeking exposure to the DeFi space. With its innovative aggregation protocol, cross-chain capabilities, and commitment to community-driven development, 1INCH holds significant upside potential.

By strategically positioning oneself in this emerging market segment, investors can capitalize on the lucrative opportunities presented by 1INCH's growth trajectory and contribute to the broader evolution of decentralized finance.

The chart analysis of 1INCH reveals compelling reasons to consider investment, particularly from a long-term perspective.

Firstly, the confirmation of divergence on the MACD indicator, observed on a weekly timeframe, suggests a potential shift in momentum.

This divergence indicates a weakening of the prevailing bearish trend, signaling a possible reversal in price direction.

Additionally, the subsiding volume on the bearish bias further supports this notion, indicating a decrease in selling pressure and potential exhaustion among sellers.

Moreover, the breakthrough above the crucial weekly resistance level of $0.58, as confirmed by a weekly candle close, signifies a significant bullish development.

This breakout suggests a newfound strength in the market, with buyers gaining control and driving prices higher. Considering these technical indicators collectively, the current scenario presents an enticing risk-to-reward profile for investors.

With minimal risk compared to its potential gains, this setup offers an attractive opportunity for investors seeking exposure to 1INCH from a long-term perspective.

For our long term investors we suggest that the current market price of $0.59-$0.6 are acceptable levels with an exposure of 0.5%-1% of the total portfolio allocation. Dips are also buying opportunities to further add to the position which we can cap at 3% of the portfolio.

For the more adept swing traders seeking an optimal entry point, strategically placing limit orders around $0.47 or exploring the range between $0.45 to $0.51 could prove advantageous.

This approach allows traders to capitalize on potential price retracements while mitigating downside risks. Additionally, there exists a possibility, albeit slight, of a downward move towards the sub $0.40 region, particularly towards the 61.8% Fibonacci retracement level.

Analysis of the daily timeframe reveals that the volume profile is nearing completion, signaling an impending shift in market dynamics. Once bulls accept the price above this value, it could serve as a catalyst for renewed bullish momentum.

Considering the current distribution of 1INCH tokens, it's evident that they are predominantly held by bullish investors who are reluctant to sell.

This accumulation phase suggests a strong conviction among holders, particularly as the market transitions into a bullish cycle. In such conditions, any positive news catalysts, coupled with the robust fundamentals and foundation of the protocol, have the potential to trigger significant upward spikes in price.

As bullish sentiment permeates the market, investors are likely to exhibit increased confidence in the project's long-term prospects, further reinforcing the bullish bias.

Therefore, as we navigate through the bull cycle, the convergence of bullish news catalysts with the solid fundamentals of the protocol can fuel substantial upside movements, offering lucrative opportunities for investors positioned strategically in the market.

What targets can we hope to expect?

In the short to medium term, 1INCH presents compelling price targets based on technical analysis and market dynamics.

A target of $1.459 appears very achievable, supported by confluence with extension levels and previous support and resistance zones. This level represents a significant upside potential from current levels.

Furthermore, there is a notable weekly gap at $2.55, which could become a target if we break above the weekly resistance at $2.03. Additionally, the $3.26 level aligns with the 38.2% Fibonacci retracement from the current low to the all-time high, supported by extension levels.

This level is anticipated to be a target as the bull cycle reaches its peak. Moreover, analysis of the volume profile spanning from 2021 to the present suggests that a target close to the weekly gap at $2.55 is the minimum price expectation for 1INCH.

These price targets provide valuable insights for traders and investors, serving as potential milestones to monitor as the market dynamics unfold.

We believe a wise strategy for investors to employ is to take advantage of selling 20%-50% of positions once targets of $1.45, $2.4-2.5 and 3.26 are achieved in order to maximize profits. This can be adjusted depending on your tolerance for risk.

We will be updating subscribers on DCA selling on the way down once we can confirm the bear cycle has begun however, we are far away from that point and we will be closely monitoring if anything changes.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.