Crypto market participants appear to be paying attention to 1inch. On-chain data shows a spike in social media-related mentions, while dormant coins have been on the move.
Will these latest developments be enough to push this altcoin to new highs?
Stealing the Crypto Spotlight
1inch recorded its second largest spike in Social Volume of the year on March 30, according to social data from Blockchain forensics platform Santiment. It has led to a price increase of close to 5%.
An increased amount of Social Volume towards a given crypto before it starts to rally can often be taken as a bullish signal.
For example, 1inch price rallied by over 68% when a similar-sized Social Volume spike occurred on Dec. 25, 2022.
Another critical metric recently spiked alongside sentiment, which may provoke further price gains for this crypto, is the 90-day Dormant Coin Circulation.
On March 27, the 90-day Dormant Coin Circulation revealed that 22.62 million tokens were moved on the 1inch network, worth $12.98 million. This was the second-largest spike of this year so far, according to data from Santiment.
Dormant Circulation shows the number of unique coins/tokens transacted on a given day that has not been moved for a long time. Spikes in this metric can be either bullish or bearish, depending on the price trend.
Also, large spikes in this metric can signal the potential for large price movements. For example, the 1inch price grew by over 30.32% in under 4 weeks after a similar size spike in Dormant Circulation on Feb. 10 this year.
1inch Price Prediction: Is $3.25 a Viable Target?
The Market-Value-to-Realized-Value (MVRV) best indicates 1inch’s potential price movements in the coming days and weeks ahead. According to Santiment, this metric compares the ratio of an asset’s market capitalization to its realized capitalization.
Most holders who bought 1inch in the last 30 days are sitting with a minor profit of 6.50%. In reality, they are unlikely to book profit at current levels yet, as 1inch is not overbought on a 30-day basis.
From the MVRV chart, the 1inch price prediction projects that a break above $0.597 can trigger a rally toward $0.70.
A gain of this size would take the 30-day MVRV ratio close to 23.50% and could then become the next euphoric market high where holders may begin to take profits.
Still, if the bears take charge and the 1inch price slips below $0.50, expect a large drop toward $0.40 before they choose to cut their losses.
Disclaimer
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