- 1INCH whale activity climbs to a multi-month high.
- Despite the price rally, 1INCH holders have refused to take profit.
The daily whale activity of 1INCH, the token that powers leading decentralized exchange aggregator 1inch, recently rallied to its highest level since 19th July. According to data from Santiment, on 8th November, the altcoin recorded 51 whale transactions, each valued above $100,000.
The spike in whale activity was due to the recent rally in 1INCH’s value, whose price surge in the last month has mirrored the growth in the general crypto market. Trading at $0.3699 at press time, 1INCH’s value increased by over 50% in the last month.
Holders remain bullish
As the alt’s price grows, participants in the 1INCH futures market have continued to open trade positions.
Data obtained from Coinglass showed that the token’s futures open interest has increased by 27% in the last 30 days. At press time, 1INCH’s open interest was $20 million.
When an asset’s open interest grows in this manner, it suggests that new money is entering the market and that existing investors are adding to their positions. It is taken as a sign of a strong underlying trend and often leads to further price appreciation.
Also, data from Coinglass showed that 1INCH’s funding rates across cryptocurrency exchanges have been purely positive since the 20th of October.
When an asset’s funding rates are positive for an extended period such as this, it suggests a strong bullish sentiment in the market, and traders are willing to pay a premium to hold long positions.
Profit-taking activity remains low – Why?
Despite the price rally in the last month, an assessment of 1INCH’s exchange activity revealed very minimal profit-taking activity.
The alt’s supply on exchange observed on a 30-day moving average has declined by 6% since 9th October. This suggested a reduction in the number of 1INCH tokens sent to crypto exchanges for onward sales.
Conversely, the token’s supply outside exchanges rallied during the same period. At 1.33 billion at press time, this has increased by 1% in the last 30 days.
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1INCH investors have not been keen to distribute their holdings due to the unprofitable state of their investments. Readings from 1INCH’s Market Value to Realized Value ratio (MVRV) put it at -77.22% at press time.
This meant the token’s current market capitalization was 77.22% below its realized capitalization. Hence, if an investor chose to distribute at this current price, it would amount to selling below the investor’s cost basis, therefore realizing losses.