Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Despite the crypto market sell-off in the past two days, Helium [HNT] has even made a profit in the past day and a half. HNT Bulls were able to hold the $7.36 support level and force a rally towards $9. Can the bulls keep up the pressure even as Bitcoin? [BTC] bleeding?
HNT-1 Hour Chart
Last week’s price action was bearish, but this bias reversed as the $9.56 lower high (orange) was beaten by an HNT trading session that closed above this level.
Now the short term bias is bullish as long as the $9 support level is defended by the bulls. In a sense, a decision also had to be made in the coming hours. Could HNT continue to rise, or was this a liquidity hunt before the bears force prices back toward $7?
If the price closes out a trading session below $8.5, the short-term bullish bias we have now is likely to flip back to bearish.
The momentum indicator showed bullish momentum over the previous day on the hourly chart. The RSI has been above the neutral 50 line for the past 24 hours, showing that the bias was bullish.
However, it appeared to be slipping back below the neutral 50 line and showed that the bullish strength could potentially wane. If the RSI falls below 40, it indicates bearish strength.
At the same time, the OBV has not made any spectacular gains. The OBV has been in a downtrend for the past week and despite the gains from the previous day, demand was not enough to break above the red marked level. This level was low since a few days ago.
The lack of buying pressure on the OBV suggests that despite the break in the bullish market structure, the bears may still be in the driver’s seat. If the price dips below USD 8.5, it is more likely that HNT will move lower towards USD 7.36 support.
If Bitcoin continues to lose value, Helium may follow in its footsteps.
This post Helium: If the price falls below this level, HNT can go lower
was published first on https://ambcrypto.com/heliumhnt-short-term-bullish-bias-will-likely-be-flipped-to/