1INCH price surges 29% in a single day. Can the team’s $5 million buy-in hold the $0.20 support level?

On November 7, 2025, the decentralized exchange aggregator 1INCH token surged 29%, reaching a key resistance level at $0.20. The rally was driven by a strategic $5 million purchase by the team’s fund on major centralized exchanges (CEXs). On-chain data shows this price increase was accompanied by a spike in network activity — trading volume jumped from 1,000 to 4,800 transactions, and active addresses increased from 324 to 551. Technical indicators present mixed signals: the MACD remains bullish, while the MFI hits an overbought level of 82. Whether the price can sustain its breakout depends on the defense of the $0.20 level. Historical patterns indicate similar team actions at the end of 2024 pushed 1INCH from $0.24 to $0.53.

Buying Behavior and Market Response Analysis

The $5 million purchase by the 1INCH team reflects a clear tactical move. According to Arkham data, the average execution price was around $0.15, coinciding with the token testing its October lows. This “bottom-fishing” strategy aligns with the team’s past behavior — in November 2024, similar actions triggered a 120% price increase. Notably, this purchase accounted for about 15% of the daily trading volume, enough to significantly influence the market.

On-chain fundamentals support this move. Daily transaction counts surged 380%, indicating increased ecosystem activity, while active addresses surpassed 550, suggesting new user inflows. This uptick coincides with the release of the new v4 version, which introduced cross-chain aggregation and gas optimization features, reducing transaction costs by 20%. Data from Dune Analytics confirms protocol monthly trading volume rebounded to $2.5 billion, up 40% from the Q3 lows.

Liquidity distribution reveals key battlegrounds. CoinGlass’s liquidation heatmap shows the highest density of long positions around $0.1897, where leveraged positions could trigger a feedback loop if liquidated. A break above this zone could prompt short covering, pushing prices toward the next liquidity cluster at $0.2260. Conversely, losing the $0.15 support could lead to a deeper pullback toward $0.10.

Technical Structure and Momentum Assessment

The chart displays a classic breakout retest pattern. After breaking out of the $0.15–$0.18 consolidation zone, the token quickly tested the $0.20 psychological level but faced profit-taking pressure. This pattern resembles the January 2024 breakout, which after a retest, led to a three-week rally.

Momentum indicators show mixed signals. The MACD histogram remains above zero and expanding, confirming bullish momentum. However, the MFI at 82 indicates overbought conditions, suggesting short-term correction risk. This divergence implies the trend’s strength is uncertain and volume confirmation is needed — a rise accompanied by increasing volume would validate the breakout.

Derivatives market positioning adds complexity. Perpetual futures data shows long leverage is $790,000 higher than short leverage, increasing the risk of a short squeeze. Additionally, a large volume of call options at the $0.20 strike could lead to delta hedging activity that amplifies price swings.

Ecosystem Development and Fundamental Support

The 1INCH ecosystem is undergoing significant upgrades. The v4 protocol’s core innovation, Fusion 2.0, employs a Dutch auction mechanism to address MEV issues and offers liquidity providers more stable yields. Since deployment in October, the proportion of trades using Fusion has increased from 15% to 35%, indicating market acceptance of the new solution.

Governance improvements bolster long-term value. The new “Dynamic Reward Distribution” model links protocol revenue directly to staking, maintaining annual yields between 8-12%. This design enhances token cash flow generation; staking now accounts for 22% of circulating supply, with locked value surpassing $200 million.

Cross-chain expansion is also gaining traction. 1INCH now integrates 12 major blockchains, including Layer-2 networks like Base, Optimism, and Arbitrum. This multi-chain approach helps maintain its leadership in DeFi aggregation. According to DefiLlama, 1INCH still holds a 35% market share among DEX aggregators, ahead of competitors like UniswapX and ParaSwap.

Trading Strategy and Risk Management

Short-term traders might consider a breakout confirmation approach. A volume-supported move above $0.20 on the 4-hour chart could signal a buy, with targets at $0.226 and $0.25. A stop-loss below $0.185 is recommended, offering a risk-reward ratio of approximately 1:2. Conservative investors should wait for a retest of the $0.18 support before entering.

For medium to long-term positioning, focus on fundamental catalysts. Key upcoming events include the mid-November governance vote on whether to allocate 100% of protocol revenue to stakers and the December cross-chain bridge upgrade. Approval of these proposals could mirror the valuation re-rating seen with Curve (CRV) in 2023.

Risks mainly stem from increased competition and regulatory uncertainty. The rapid growth of UniswapX threatens to erode 1INCH’s market share, while regulatory scrutiny in the US remains uncertain. Position sizes should be limited to around 3% of the portfolio, with dynamic take-profit strategies to lock in gains.

Conclusion

The 29% daily surge in 1INCH reflects both strategic team buying and improving fundamentals. While the $0.20 resistance level has yet to be definitively broken, increased network activity and technical improvements lay a solid foundation for further upside. Amid intensifying competition in the DeFi aggregator space, 1INCH’s ongoing product innovation and governance enhancements help maintain its industry leadership. If the team continues its historically precise market operations and the ecosystem develops in line with technological upgrades, the token could break higher after some consolidation.