$1INCH Rockets Over 50% in 24 Hours – What Triggered This Rally?
While Bitcoin's price remained stagnant around the $30,000 mark, the decentralized exchange aggregator token $1INCH experienced an explosive surge. On July 17 alone, $1INCH skyrocketed over 50%, peaking at $0.5935 – its highest price in three months. This dramatic movement can be attributed to two primary factors.
Reason 1: South Korean Exchange Frenzy and Celsius' Coin Liquidation
Market analysts identified South Korea's Upbit exchange as ground zero for this rally. Data reveals:
- $1INCH became the second-most traded cryptocurrency on Upbit, with $360 million in 24-hour volume
- Simultaneous large sell-offs occurred as the price peaked, causing a sharp correction to $0.3923
- The volatility liquidated $4.28 million in futures contracts (62.6% long positions)
Blockchain forensic platform Nansen uncovered that bankrupt lender Celsius began moving $2.44 million worth of $1INCH three days prior to the surge, as part of court-approved liquidations into BTC and ETH.
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Reason 2: Surging Network Activity and Whale Accumulation
Fundamental metrics showed significant growth:
- Daily active addresses increased 264% between July 9-17
- Whale transactions (>$100k) jumped from 8 to 50 daily
- Price rose 90% during this active user expansion phase
Analyst Brahim Ajibade identified crucial support levels:
- Key demand zone at $0.45 (where 2,420 investors hold 56M tokens)
- Potential rebound target of $0.60 if support holds
Market Implications and Future Outlook
This event demonstrates how:
- Regional exchange dynamics can disproportionately impact token prices
- Fundamental improvements (user growth) can validate price movements
- Whale activity often precedes major volatility
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FAQ Section
Q: Is the 1INCH price surge sustainable?
A: While network activity supports fundamentals, traders should watch the $0.45 support level for continuation signals.
Q: Why did South Korean traders focus on 1INCH?
A: Upbit's local market often develops unique token preferences due to regional investment trends.
Q: How does Celsius' liquidation affect the market?
A: Large, timed sell-offs from institutional holders can create temporary price distortions.
Q: What's the significance of increased whale transactions?
A: It typically indicates growing institutional interest, though may also signal profit-taking at peaks.
Q: Should investors buy after a 50% surge?
A: Caution is advised – wait for consolidation above key support levels before considering new positions.