- A beginners guide to 1INCH’s history.
- A look at how 1INCH aggregates between platforms to give you the best pricing.
- A short term bearish trend is seen, what’s next for the coin.
1INCH is a decentralized exchange aggregator platform that is made to provide users with the cheapest route for trading after scanning prices on different exchanges. It works by searching and ranking the utility, across platforms like Uniswap, Balancer, etc.
The aggregator feature in 1INCH sets it apart from its competitors.
1INCH will divide your order and spread it across numerous exchanges when it comes to finishing the trade and it will then combine it into a single transaction in the end.
How does 1 inch work with different protocols?
Price and fees aggregation protocol
The Pathfinder which is the aggregator of 1INCH compares and gives users the best crypto prices along with the lowest exchange rate brokerage fees.
It also examines additional paths to gain more savings. As an example, the protocol may find out that an investor can buy Solana at a lower price if they buy it with USD rather than exchanging it for some ETH.
After discovering this information, the protocol will convert the ETH to USD and then to Solana so that investors are able to get the best possible deal.
The Limit order protocol
1INCH provides the best advanced trading tools when compared to the likes of uniswap. The order types like stop loss orders, auctions and trailing stop loss orders using its compelling protocols which doesn’t even charge any fees, which is again a separator from its competitors
Liquidity protocol
1INCH offers liquidity pools which is another medium for users to earn by making available the crypto that they are not using. The platform then uses this crypto in fulfilling orders. In exchange for this, users are given some interest on their holdings.
1INCH’s Pricing History and Technical Analysis
A year ago, the coin’s price was around the average of $0.7 which didn’t last long. After reaching a high of $0.8793, the bears pushed the price down to $0.5 but when it was time for the bulls to step in, the FTX crash swept the price down to $0.469.
Although the stock did try to recover in February 2023 after making a high of $0.68, the coin’s price has been in a continuous free fall..
Currently, the price is in the downtrend and the 55 and 200-day moving average are both confirming the same. There was a breakout at the previous resistance level of $0.37 but the bears stepped in just after the price reached $0.43.
The predictions estimate the price to be in a consolidation zone between $0.4373 and $0.2542, after which there will be a short-term bearish trend. A second resistance level awaits at $0.53 with a second support at $0.200.
Conclusion:
1INCH is a decentralized exchange aggregator platform that works to provide users with the best pricing among all the available exchanges. It works with some protocols like this price and fees aggregation protocol, limited order protocol, and liquidity protocol. Currently, the price is in a downtrend with a bearish trend predicted for the future if the consolidation continues.
