Newton Gitonga
Cryptocurrencies remained relatively muted over the past 24 hours as Bitcoin remained rangebound.
The global crypto market cap declined by 0.51% to $3.27 trillion, while Bitcoin hovers around $105K, trading at $104,987 during this publication.
Meanwhile, 1INCH appears ready for potential reversals after weeks of prolonged consolidations and significant downtrends.
The alt recently rebounded from the reliable support at $0.1777, hinting at upside price actions.
With the underway voting looking to compensate victims of last year’s hack, could 1INCH extend its recovery to the key hurdle at $0.2274?
Fundamentals and technical indicators suggest so.
DAO proposal to compensate exploited victims
1inch Foundation’s new proposal, dubbed 1IP-80, fuels the prevailing optimism on the digital asset.
It seeks to pay individuals who suffered from the October 2024 supply chain exploit.
The incident happened after perpetrators leveraged weakness in the website plugin Lottie Player library, stealing tokens worth $768,026.
While the protocol recovered most assets from the latest attack (which happened in March 2025), it hasn’t recompensed October victims.
Thus, the new proposal seeks to pay affected investors using DAO treasury funds.
Compensating exploit victims might renew confidence in the project as it reveals its user-centric approach.
The proposal reads:
A comprehensive reimbursement maintains user trust, demonstrates ecosystem resilience, and aligns with the DAO’s commitment to community protection.
The proposal’s controversy and KYC requirements
The proposal has attracted controversies among the DAO community.
One side believes compensating users using DAO funds without continued revenue inflows would drain the treasury, weakening 1inch.
They trust the project doesn’t boast financial muscles to offer insurance services.
However, some argue that the DAO should protect its users.
The ongoing voting testifies to the split, with 53.47% (3.8 million) in favor and 46.53% (3.3 million) against.
However, only two large addresses dominate the voting, one accounting for all No and the other YES votes.
Voting will conclude on 22 June.
Meanwhile, the reimbursement plan requires various actions from users (if the proposal passes).
First and foremost, they should verify their identities by completing KYC procedures.
Also, victims should prove the loss with evidence and file a law enforcement statement.
Moreover, they should sign a reimbursement agreement and surrender future rights to any retrieved assets.
Meanwhile, a criminal investigation into 1inch’s exploitations is ongoing in the Cayman Islands
1NCH price outlook: an 18% rally imminent?
The native token has struggled with notable bearishness lately, depicting deteriorated user confidence, possibly due to hacking incidents.
Crypto enthusiasts avoid protocols with weak security infrastructures.
1INCH trades at $0.1916 after dropping 15% and 12% in the past month and week.
Nevertheless, price charts bring some hope.
1inch forms a potential reversal pattern on the 4H chart after extended declines.
The altcoin has bounced back from the reliable support barrier at $0.1777.
1NCH has tested this zone several times, highlighting buyer interest around the mark.
Recently, prices plunged to $0.1744 but rebounded to the support swiftly, creating a potential double-bottom setup, which heralds substantial price rallies.
1inch bulls will target the resistance at $0.2208.
That could clear the path to $0.2274, which would mean an 18.69% jump from 1NCH’s current price.
The MACD and RSI demonstrate the gradual buyer resurgence.
However, 1inch trades below the 50EMA, indicating seller control.
Price dips below $0.1900 could plunge the token to the $0.1777 foothold.
Losing $0.1744 will invalidate the bullish narrative and catalyze notable dips or consolidations.
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