1INCH Nears Resistance, Bullish Retest ?1INCH has produced a strong bullish impulse from its recent lows and is now approaching a major high timeframe resistance zone.
This area has previously acted as a significant supply region, making it an important level to watch for signs of exhaustion. After such an aggressive rally, a short-term rejection would not be unusual and could provide the market with a healthier structure before any continuation higher.
If sellers defend the current resistance, price action could rotate back towards the key high timeframe support below. This support aligns with the 0.618 Fibonacci retracement, creating a strong technical confluence where buyers may look to re-enter the market. A controlled pullback into this region would allow the market to remove short-term inefficiencies while maintaining the broader bullish outlook.
The reaction at support will be critical. A strong bullish response, accompanied by increasing volume and a shift in lower timeframe market structure, would reinforce the idea that the recent rally remains intact rather than being a temporary relief bounce. This would also confirm the support as a higher low within the developing trend.
Should buyers successfully defend the support region, the probability increases for another impulsive move back towards the current high timeframe resistance. A breakout above that level would strengthen the bullish case further and potentially mark the beginning of a larger trend reversal on the higher timeframe.
Long
