Published 6 hours ago
Contrary to the July-August crypto recovery, the HNT/USDT pair showed a constant downfall for over two months. Furthermore, the steady lower low in prices revealed the formation of a falling parallel channel pattern in the daily time frame chart. This pattern governing the HNT price should soon offer a bullish breakout trade.
Key points from HNT analysis:
- The technical chart shows a strong accumulation zone at $6.36
- The 50-day EMA offers dynamic resistance to HNT price
- The intraday trading volume in the Helium coin is $27.2 Million, indicating a 26.5% loss.
Source- tradingview
The last bear cycle within this pattern was initiated when the prices reverted from the resistance trendline on August 9th. Furthermore, with the recent sell-off in the crypto market, the traders experienced an aggressive downfall and plunged to the May low support of $6.5.
In addition, with the recent outage in the Helium ecosystem, the price nearly lost the $6.5 support. On August 22nd, the HNT price plummeted to a low of $6.36; however, by the end of the day, the price reverted higher, indicating a high demand pressure.
? We’re aware that https://t.co/qzCxyGCfQC, https://t.co/EZsA42PQoZ, https://t.co/PjzTUq5DOo and https://t.co/D4vLbCmuZd are all down at the moment due to an outage with our DNS provider. Stay tuned for an update on when these are back online! ?
— Helium? (@helium) August 24, 2022
Today, the coin price received a sudden surge in buying pressure and bounced back from $6.5 support with a 12.8% jump. The bullish reversal should drive the prices 11.3% higher and hit the shared resistance of $8.36 and resistance trendline.
In theory, the falling channel is a bullish continuation pattern that triggers a strong directional rally upon the breakout of its resistance trendline.
Thus, a bullish breakout from this pattern could signal an early sign of trend reversal and may surge the HNT price to $12.2 resistance.
On a contrary note, a possible reversal from the trendline will prolong the downfall within the pattern for a few more sessions.
Technical indicator
Relative Strength Index: the RSI slope rebounded from the overbought region, indicating the aggressive selling has stabilized a bit. However, the overall sentiment is still bearish as the indicator slope moves below the 50%
Bollinger band indicator: the recent downfall pierced the indicator lower band accentuates the overextended selling from trades. The indicator midline indicates the current reversal may face selling pressure at $8
- Resistance levels- $8.3 and $10
- Support levels- $6.8 and $6
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/hnt-buyers-defend-mays-low-support-of-6-3-is-this-good-time-to-buy/