Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
Regardless of the sell-off throughout the crypto market up to now two days, Helium [HNT] has truly made beneficial properties up to now day and a half. HNT bulls have been capable of maintain on to the $7.36 assist degree and drive a rally towards $9. Can the bulls sustain the stress at the same time as Bitcoin [BTC] bleeds?
HNT- 1 Hour Chart
The worth motion of the previous week was bearish, however this bias flipped when the $9.56 decrease excessive (orange) was crushed by an HNT buying and selling session closing above this degree.
Now, the short-term bias is bullish, as long as the $9 assist degree is defended by the bulls. In a manner, there was a call to be made within the coming hours as properly. Might HNT proceed to rally increased, or was this a liquidity hunt earlier than the bears drive the costs decrease towards $7 once more?
If the worth closes a buying and selling session beneath $8.5, the short-term bullish bias we now have will seemingly as soon as extra be flipped to bearish.
Rationale
The momentum indicator confirmed bullish momentum over the day past on the hourly chart. The RSI has been above the impartial 50 line over the previous 24 hours, which confirmed that the bias had been bullish.
Nevertheless, it appeared to slide again beneath the impartial 50 line, and confirmed that bullish power might probably be waning. If the RSI drops beneath 40, it will point out bearish power.
On the identical time, the OBV has not made spectacular beneficial properties. The OBV has been on a downtrend over the previous week, and regardless of the day past’s beneficial properties, demand was not sufficient to interrupt above the extent highlighted in purple. This degree was low from a few days in the past.
Conclusion
The shortage of shopping for stress proven on the OBV means that, regardless of the bullish market construction break, the bears might nonetheless be within the driver’s seat. If the worth drops beneath $8.5, it will be extra seemingly that HNT is headed decrease, towards the $7.36 assist.
If Bitcoin continues to shed worth, Helium might comply with in its footsteps.