Why 1inch’s $48 million withdrawal failed to move markets
- During the trading session of 28 August, 1inch Investment Fund purchased ETH worth $10 million.
- The market, however, failed to react, as 1INCH’s price remained flat.
In the early trading hours of 28 August, the 1inch [1INCH] Investment Fund acquired over 6,000 Ethereum [ETH] coins, worth $10 million, onchain sleuth Lookonchain found. However, 1INCH traders were unfazed by the move, with the price of 1INCH remaining relatively flat at press time.
1inch Investment Fund wallet spent $10M to buy 6,088 $ETH at $1,655 6 hrs ago.
The wallet bought a total of 17K $ETH($26.8M) at an average price of $1,569 on Jan 13, Feb 9 and Mar 14.
— Lookonchain (@lookonchain) August 28, 2023
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A further assessment of the purchase revealed that before the acquisition, a crypto wallet belonging to the DEX aggregator’s Investment Fund withdrew $48.73 million worth of cryptocurrencies from Uniswap [UNI].
According to data from ScopeScan, the fund address, at press time, held 9,453 ETH, 31.79 million USDT, 396,356 UNI, 52.18 USDC, and 500 Galxe [GAL].
The token did not move an inch
While this purchase was a significant event capable of influencing 1INCH’s price direction, the market remained flat as the alt’s price traded within a narrow range at press time. According to CoinMarketCap, the price per 1INCH token was $0.2447, growing by a mere 1% in the last 24 hours.
Increased 1INCH selloffs at the beginning of the month caused its price to trend downward in the last 30 days. Exchanging hands at $0.31 on 29 July, the alt’s price has since plummeted by almost 25%.
Data from Santiment revealed an uptick in 1INCH’s supply of cryptocurrency exchanges between 31 July and 15 August. During that period, 1INCH exchange reserves rose by 7%. Within the same period, its supply outside exchanges decreased by 1%.
The surge in exchange reserves indicated an increased 1INCH distribution. Interestingly, the period was marked by a negative Market Value to Realized Value (MVRV) ratio.
This indicated that 1INCH was undervalued, and investors who sold did so below their cost basis, thereby logging losses.
Read 1inch Network’s [1INCH] Price Prediction 2023-2024
While sell-offs have slowed in the past few weeks, with a decrease in exchange reserves spotted at press time, accumulation has also waned. On a daily chart, key momentum indicators rested below their center lines, inching closer to oversold zones.
1INCH’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 33.66 and 39.46 at the time of writing. A decrease in the number of tokens being traded and a lack of new tokens being accumulated suggested that investors have stayed their hands from trading.