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.

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