1inch (1INCH): Opportunity to bounce back after technology breakout?

The price of 1inch (1INCH) is experiencing a slight recovery, fluctuating around the 0.246 USD mark on Wednesday morning, after falling below an important support zone and losing more than 5% since the beginning of the week. Notably, this weakening trend occurs even as the protocol has just announced a cross-chain swapping feature between Solana (SOL) and more than 12 Ethereum Virtual Machine (EVM) networks – a advancement expected to expand the ecosystem. However, technical signals indicate that bullish momentum is slowing down, suggesting that 1INCH may continue to face corrective pressure in the coming days.

1inch launches cross-chain swap on Solana

On Tuesday, 1inch announced an important advancement: allowing traders to swap assets directly between Solana and EVM networks, completely without the need for the (bridge) or intermediary messaging protocol.

This move is seen as a major boost, as it unites the two leading blockchain ecosystems – Ethereum (ETH) and Solana – into the same liquidity flow, allowing users to trade seamlessly without worrying about which network they are operating on.

"The cross-chain swapping function of Solana by 1inch not only ends the 'isolation' of Solana but also transforms it into a comprehensive DeFi hub, attracting more capital and a new community of users," 1inch emphasized in the blog post.

With this integration, 1inch along with Solana and Ethereum is expected to benefit in the long term due to increased liquidity and a deeper level of application within the DeFi ecosystem.

Price prediction for 1inch: 1INCH closes below the 200-day EMA

The price of 1INCH was halted at the Fibonacci retracement level of 61.8% around the mark of 0.30 USD on August 10, before plunging 18% in just 9 days and closing below the 200-day exponential moving average (EMA) at 0.246 USD on Tuesday. By Wednesday morning, the token recorded a slight rebound, moving closer back to this important EMA line.

If the 200-day EMA continues to act as resistance, the downtrend of 1INCH may extend, with the target retreating to the nearest bottom on August 2 at 0.232 USD.

Daily chart of 1INCH/USDT | Source: TradingViewThe technical signals are still leaning towards a bearish trend: The Relative Strength Index (RSI) is at 43, below the neutral threshold of 50, indicating that selling pressure is dominant. Meanwhile, the MACD indicator has shown a bearish crossover since last week, along with an expanding red histogram – a sign that the downtrend may continue.

On the contrary, if 1INCH regains momentum and successfully breaks out, the price could completely aim for the challenge of the 50-day EMA line at 0.257 USD.

SN_Nour