HNT Buyers Defend May’s Low Support Of $6.3; Is this Good time to Buy?
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
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