Can The Potential Fakeout Plunge HT Back to $4.3

On July 12th, the Huobi (HT) price showcased its second reversal from the $3.4 low, validating it as legitimate support. The follow-up recovery displayed nine consecutive green candles and surged 12.3%. Furthermore, amid this recovery, the buyers gave a bullish breakout from the $4.7 neckline of the double bottom pattern.

Key points: 

• The post-retest rally may surge HT price by 6%
• The 20-day EMA flipped support bolster buyers to sustain $4.7
• The intraday trading volume in Huobi is $26.9 Million, indicating a 16.8% gain.

Source- Tradingview

In response to last month’s uncertainty in the crypto market, the HT/USDT pair shaped into a double bottom pattern under the neckline resistance of $4.74. This bullish continuation pattern theory offers a direction rally after a period of consolidation.

Thus, on July 18th, with a significant pump in volume, the HT price breached the $4.7 neckline. However, Since then, the altcoin has been struggling in a retest phase, finding it difficult to sustain above the breached resistance.

Over the past two days, the HT price has gained roughly 2%, where the high-wick rejection attached to them indicates the buyers feel exhausted. Thus, if the selling pressure persists, the sellers may pull the coin price below $4.7.

Furthermore, the daily candlestick closing below the mentioned support would invalidate the bullish pattern and may dump the coin price back to $4.31.

On a contrary note, if buyers managed to sustain above $4.7 support, the technical setup indicates the HT price may rise above the $5.1 resistance.

 Technical Indicator

Bollinger Band indicator: the recent price jumps to hit the indicator’s upper band indicate aggressive buying from traders. However, a retest to this overhead resistance usually bolsters a minor retracement.

RSI indicator: The RSI slope wavering around the neutral line indicates neutral bias. However, facing a minor bearish divergence, the indicator value below the midline suggests the sellers currently possess an upper hand.

• Resistance levels: $5.1 and $5.6
• Support levels: $4.74 and $4.3