The investment fund associated with 1inch is selling portions of its cryptocurrency assets, even as the market shows signs of recovery, indicating a calculated approach to limit losses and protect against possible further declines.
According to on-chain analytics from a monitoring account, the 1inch fund has recently divested 37.9 Wrapped Bitcoin (WBTC) at a price of $86,578 each, amounting to approximately $3.28 million, along with 511 Ethereum (ETH) at $2,072 each, totaling around $1.05 million.
The analytics source disclosed that between February 2 and March 10, the fund invested around $44.22 million in WBTC, ETH, and 1INCH. This included an acquisition of 11,198 ETH for about $28.85 million at an average cost of $2,577, 160.8 WBTC for roughly $14.21 million at an average price of $88,395, and 4.7 million 1INCH for around $1.15 million at an average price of $0.245. “At present, all investments are underwater,” the source noted.
Additionally, it was highlighted that 1inch has generally performed well trading these three assets, particularly with Ethereum.
Since the start of February when 1inch commenced acquiring these assets, ETH has seen a nearly 50% drop, falling from over $3,300 to below $1,800 by March 11. The price has consistently remained beneath the 21-day Exponential Moving Average (EMA), with notable declines marked by volume spikes, especially in early February, indicating active liquidation. However, the price has recently risen back above $2,090, testing the 21-day EMA at $2,067 for the first time in several weeks.
Similarly, WBTC experienced a substantial decline since early February, when its price peaked above $105,000. Similar to Ethereum, it remained below the 21-day EMA for an extended period, with a few minor surges. The downturn intensified in late February and early March, culminating in sharp sell-offs that drove the price as low as approximately $76,000 on March 11. By mid-March, WBTC began to establish support around the $80,000 mark. Presently, WBTC has rebounded to $87,544, exceeding the EMA at $85,515.82, indicating a potential buildup of bullish momentum.
While both assets have retraced toward significant resistance levels, their extended periods below the 21-day EMA and previous rapid sell-offs imply that the 1inch fund might be capitalizing on the recent market bounce to minimize exposure and mitigate future risk.