Journalist
Posted:
- 1INCH whale activity rises to multi-month high.
- Despite the price increase, 1INCH holders have refused to take profits.
The daily whale activity of 1INCH, the token that powers the leading decentralized exchange aggregator 1inch, recently rose to its highest level since July 19. According to data from SantimentOn November 8, the altcoin recorded 51 whale transactions, each worth more than $100,000.
Source: Santiment
The spike in whale activity was due to the recent rally in the value of 1INCH, whose price increase over the past month reflected growth in the overall crypto market. The value of 1INCH, which stood at $0.3699 at the time of writing, has risen more than 50% in the past month.
Holders remain bullish
As the price of the alt rises, participants in the 1INCH futures market have continued to open trading positions.
Data obtained from Mint glass showed that the token’s open interest has increased by 27% in the last 30 days. At the time of writing, 1INCH’s open interest was $20 million.
When an asset’s open interest grows in this way, it suggests that new money is entering the market and existing investors are adding to their positions. It is taken as a sign of a strong underlying trend and often leads to further price increases.
Source: Coinglass
Coinglass data also showed that 1INCH’s funding rates on cryptocurrency exchanges have been purely positive since October 20.
When an asset’s funding rates are positive for an extended period of time like this, it indicates strong bullish sentiment in the market and traders are willing to pay a premium to hold long positions.
Source: Coinglass
Profit-taking activity remains low – why?
Despite last month’s share price rise, a review of 1INCH’s stock market activity revealed very minimal profit-taking activity.
The alt’s supply on the exchange, as measured on a 30-day moving average, has fallen 6% since October 9. This suggested a reduction in the number of 1INCH tokens sent to crypto exchanges for further sale.
Conversely, the supply of the token increased outside of exchanges during the same period. At 1.33 billion at the time of writing, this has increased by 1% over the past thirty days.
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Source: Santiment
1INCH investors were not keen to divide their holdings due to the unprofitable state of their investments. Readings of 1INCH’s market value to realized value ratio (MVRV) put it at -77.22% at the time of writing.
This meant that the token’s current market capitalization was 77.22% below its realized capitalization. Therefore, if an investor chooses to distribute at this current price, it would amount to selling below the investor’s cost basis, thereby realizing losses.
Source: Santiment
