No end in Sight as HNT Continues Downtrend After a 10% Drop

Helium recorded massive losses during the previous intraday session. We observed that the bulls attempted a rally but failed as the coin experienced enormous selling pressure. The cause of this downtrend remains unclear.

Nonetheless, we may conclude that HNT only succumbed to the general market sentiment. It opened at $5.68 but closed at $5.10. Both prices signify a more than 10% drop in value. Many would expect recovery over the next 24 hours, unfortunately, there is none at the time of writing.

Helium Flipped the $5 Support

This comes as a shock to many who believe the level will hold. It was one tough support as it held out in recent times. However, the selling at this time was more than the previous, and as a result, it gave way.

There are also several indications that there will be more downtrends. One such is the Moving Average Convergence Divergence. We observed that both the 12-day EMA and 26-day EMA surged above 0 following numerous attempts.

The 12-day as at the time of writing, is taking a dip that indicates a bearish convergence. A divergence is soon to follow which may herald the start of another bearish round. The Relative Strength Index is also showing a decrease in buying pressure which may push this prediction.

Additionally, HNT also flipped its 50-day MA following consistent downtrends. All these metrics point to the fact that the asset may see more massive retracements if current market sentiment does not change.

Key Levels to Watch

Vital Support: $2.5, $4

Vital Resistance: $6, $10, $12

Of all the highlighted levels, only two are short-term. On the part of support, The $4 barrier is the only short-term.It is also important to note that several attempts at flipping it failed Nonetheless, the upcoming downtrend may see the mark flip.

If it does, the net level to watch is the long-term $2.5 as there are no other positive barriers once the first one breaks. However, prices are still lingering around $5 and $4.9. There may be a recovery.

If that happens, a retest of the $6 resistance is almost certain. After this mark, there are no tough levels until $10. Breaking it may result in a build for testing $12. Helium is not the only asset experiencing notable losses.

Bitcoin Cash made significant moves earlier today to retake the 50-day MA. It briefly flipped it but met strong resistance. Due to this, it retraced below its opening price and is losing half (3.28%) of what it lost during the previous intraday session.

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