With a massive engulfing candle of a 34% hike, the 1-inch price fails to surpass the 50-day EMA. Will this lead to a drop to $0.22?

Amid the broader market’s intraday recovery on Thursday, the 1-inch toke price jumped with an intense boost in buying pressure. However, the dynamic resistance prolonged the bearish trend for 1-inch.

Will this bullish failure result in a crash back to the $0.22 support level?

The Falling Channel at Play

In the daily chart, the 1-inch price reveals a falling channel pattern, accounting for a 69% drop since March 2024. The downfall resulted in a price drop from $0.7011 to $0.21.

Currently, the altcoin is moving along the descending support trend line and has recently challenged the 50-day EMM. With a bullish engulfing candle of 34.56% jump on September 4, the altcoin undermines the downfall over the last seven days.

However, the bullish wave failed to surpass the dynamic resistance, resulting in an intraday pullback of 6.86% before closing at $0.27.

The signal and MACD lines avoid a death cross with the recent bullish engulfing candle, and the bullish histograms resurface. The declining trend in the 50-day and 200-day EMA maintains a bearish alignment.

Why did the 1-inch Surge on Wednesday?

The critical reason behind the 34% jump on Wednesday remains the growing confidence of the 1-inch team. The team has bought 7.6 million 1-inch tokens, accounting for $1.71 million. With the price surge, the altcoin surpassed $0.27 and peaked at $0.292.

Will The 1-inch Token Test $0.22?

Based on the Fibonacci level, the altcoin fails to reach even the 23.60% level at $0.33. With the higher price rejection near the 50-day EMA and a bearish continuation today, the altcoin is unlikely to surpass the dynamic resistance.

Hence, as the intraday candle continues gaining momentum, the downfall will likely hit the $0.22 support level. However, the underlying demand at this crucial level could prolong the sideways shift before the next bullish attempt.