1INCH price stuck in a bearish triangle, targets potential 17% sell-off
- 1INCH price stuck in bearish formation as price action takes another leg lower early in the week.
- 1INCH is nearing the consolidation point of the bearish triangle.
- Expect to see a firm break that could tank towards $0.40 and test the low of March.
1INCH (1INCH) price is under the scrutiny of a bearish triangle as the base was identified on Monday with a small bounce off it. Although bulls could still try to go for a breakout trade, the Relative Strength Index (RSI) shows clear signs that the pattern is on its way to completing its cycle. A bearish breakdown does not need to mean issues, although traders must know how big the downward movement can be.
1INCH targets $0.40 as bearish triangle develops
1INCH price has investors and traders gearing up for another leg lower. Why stand in the way if the drop is a near certainty with the bearish pattern and the RSI both very much in sync with each other confirming the downward trajectory. When the base breaks, a broad area becomes exposed, with the low of March at risk of printing an even lower number than at the beginning of the month.
1INCH thus sees traders on the sideways, avoiding to support the price action just yet. Expect the drop to reach as far as $0.40 and bear 17% losses for the breakout. If the selloff overshoots, the monthly S2 at $0.38 is primed to fill in the gap.
1INCH/USD 4H-chart
From a bullish angle, the ideal scenario would be a bear trap on s small breach below the monthly S1. Such development could easily be met with some heavy buying of bulls. Price action would quickly swoop up higher and pierce through the 55-day and the 200-day Simple Moving Average to hit $0.58, with an 18% increase at hand.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
