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Analysis

Helium gains 28% in a week, but its further hike will depend on…

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A bullish divergence occurred in the first week of February when the price made lower lows, but the RSI made higher lows.
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Helium’s Recent Bounce Lacks Volume—Is a Range Formation Next?
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  • Helium needed to close a daily session above $4.24 to flip the daily market structure bullishly.
  • The recent bounce to $4.18 could be followed by a range formation above $3.3.

Helium [HNT] had fallen 68.5% from the December resistance of $9.54 to retest the psychological $3 support last week. This amounted to a 68.5% price drop in just over two months.

A lack of strong buying and the persistent downtrend since December meant the $3.3 zone was the next bearish price target.

Helium was yet to break the downtrend despite a 28% bounce

Helium 1-day TradingView

Source: HNT/USDT on TradingView

The market structure of HNT on the daily chart was bearish. The recent lower high at $4.24 was highlighted in orange and remained the level to beat to shift the structure bullishly.

Over the past two weeks, the bearish momentum has begun to weaken.

A bullish divergence occurred in the first week of February, when the price made lower lows, but the RSI made higher lows.

Following this, Helium managed to bounce from the $3 round number support, gaining 28.5% in under a week.

This bounce was not borne on high buying volume, according to the A/D indicator. This volume indicator remained on its downtrend since mid-December, although it saw a bounce over the past ten days.

Helium Liquidation Heatmap

Source: Coinglass

The 1-week liquidation heatmap noted the large liquidity cluster around $3.6. This area was tested on the 10th of February, and prices quickly jumped to $4.19. This swift bounce was likely carried higher, in part, by a cascade of short liquidations.

Since then, the volatility has fallen, and HNT has consolidated under the $4 level. The magnetic zone at $3.3 could beckon the token prices to it over the coming days.

Traders should be prepared for a range formation between $3.3 and $4.2-$4.5. In the near term, the $3.6 zone would likely halt the bearish advance.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

 

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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