Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Harmony plunged to as low as $0.135, but jumped quickly in recent hours, signaling further gains could be made in the coming days. The indicators indicated that momentum and selling pressure had been strong in recent days. The short-term market structure was also bearish. Despite these doubts, higher time frames showed that ONE had reached a logical retracement level to buy the asset.
A-2 hour chart
Source: ONE/USDT on TradingView
The visible range of the volume profile showed the value area expanding from $0.14 to $0.0.175. The Point of Control was at $0.162 representing the area where most of the trading volume has occurred within the visible range.
At the time of writing, the price fell to $0.135, below the Value Area Lows at $0.14, but bounced back quickly. Additionally, the $0.14 area was where ONE began its late March rally to the $0.18 high.
So if continued buying pressure is seen, there could be a similar rally in the coming days.
rode
Source: ONE/USDT on TradingView
The RSI was below the neutral 50 showing that momentum behind ONE on the 2 hour time frame was still bearish. The MACD presented similar evidence when the MACD line (blue) formed a bullish crossover above the signal line (orange), but this was below the zero line. So there was still a bearish bias.
The Chaikin Money Flow rose above +0.05 the previous day to show rising buying pressure. The OBV has also regained a level it has maintained as support for the past three weeks.
Conclusion
While price action and momentum have been bearish in the short term, swing traders can look at the charts and see a good risk-to-reward setup to take a long position. The OBV climbed again above a level it has not crossed since February.
This was important as rallies have sprung up in this area for Harmony in recent months. There was a rally of 45% in mid-March and a rally of almost 54% at the end of February.
This post Harmony [ONE]: Will Buying Pressure Continue Once Value Area Lows Are Broken?
was published first on https://ambcrypto.com/harmony-one-with-the-value-area-lows-breached-will-the-buying-pressure-continue/
