Summary: 1inch price prediction – Bearish indicators, yes, but is a recovery coming soon?

The 1inch (1INCH) token has recently experienced a significant price correction, prompting market participants to assess its future trajectory. While some traditional market indicators suggest continued bearishness, a deeper dive into its price action and underlying on-chain data offers a more nuanced and potentially optimistic outlook for the decentralized finance aggregator. 1INCH underwent a substantial 40.7% price retracement from mid-July to early August, plummeting from $0.391 to a swing low of $0.232. Despite this sharp decline, the higher timeframe market structure has impressively maintained its bullish integrity. A crucial development is the recent retest of the $0.24 zone, which previously served as resistance in May and now appears to be transitioning into a robust support level. This successful retest is an encouraging signal for long-term investors, hinting at a potential buying opportunity. However, lagging technical indicators present a conflicting narrative: the Chaikin Money Flow (CMF) at -0.26 and the Moving Average Convergence Divergence (MACD) both highlight strong downward momentum, while the Accumulation/Distribution (A/D) line remained flat, suggesting that intense selling pressure might be subsiding. Further insights emerge from the on-chain metrics. Weighted sentiment has predominantly been negative throughout the second half of July, coupled with falling Open Interest, reflecting general market caution and a bearish derivatives outlook. However, a critical piece of data comes from the mean coin age. After a period of decline in late June and early July, indicating profit-taking, the mean coin age has been steadily trending higher over the past two weeks. This upward trend signifies network-wide accumulation and a growing conviction among holders. This observed accumulation, combined with the successful retest of the crucial $0.24 support level, significantly increases the likelihood of a bullish reversal for 1INCH, particularly if Bitcoin can stabilize after its own recent price fluctuations.