HNT Technical Analysis: Channel Fallout Demand Retest At $5

The HNT technical analysis shows a stagnancy in the channel fallout rally, reflecting a high possibility of a reversal to retest the $5 mark. The HNT price action projects an upcoming retest phase of the broken support trendline of a rising channel pattern. However, the possibility of a bull cycle exceeding the $5 mark increases due to the increased lower price rejection candles. So, should you avoid booking profits this early?

Key Points:

• The Helium price action shows lower price rejection candles teasing an upcoming retest.  
• An extended uptrend above the 50-day EMA will reach the $6.25 mark.
• The intraday trading volume in Helium is $242 Million.

Source-Tradingview

HNT Technical Analysis

The increased bearish influence over the HNT price action led to a bearish breakout of a rising channel pattern in the daily chart. The breakout rally forms a Doji at the psychological support of $4.5 and teases a morning star pattern forming to restart the bull cycle. Currently, the daily candle shows minimum body, but the lower price rejection from the teases a price jump. However, the leap may come as the retest of the bearish breakout takes a turnaround at $5 to prolong the downtrend. Additionally, the spike in trading volume makes a strong bull cycle possible as the buying pressure increases. If the buying pressure increases, the Helium market price will rise to $5, teasing a breakout with a potential to reach $6.25.  Conversely, if the bearish momentum increases, a reversal will dump the HNT prices to $3.5. 

Technical Indicator

The RSI indicator shows a lateral trend in the nearly oversold zone after crossing under the 14-day average line. Moreover, the Fast and slow lines signal a bearish crossover starting a bearish trend in histograms.    Therefore, the HNT technical analysis suggests that traders can find a selling opportunity if the prices fail to surpass $5. However, till then, short-term buyers can ride the recovery rally to $5.  Resistance levels- $5 and $6.25 Support levels-  $3.5 and $3

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