HNT crypto’s 45% surge: Is a $10 price target on the cards?
The steady demand for HNT among market participants can push it above the new resistance level, which may have formed at $5.9
- HNT was the coin with the highest gains in the last week.
- A key technical indicator has hinted at the possibility of a continued rally.
With a 45% price growth in the last week, HNT, the native coin of the Helium Blockchain, currently ranks as the cryptocurrency asset with the most gains during that period, according to CoinMarketCap.
At press time, the altcoin exchanged hands at $5.9, recording a 12% price surge in the past 24 hours. Its daily trading volume totaled $67 million during that period, rising by 11%.
Examining the possibility of a sustained rally
An assessment of HNT’s price performance on a daily chart revealed the formation of a U-shaped cup pattern, also known as a cup and handle pattern.
This pattern is formed when an asset’s price initiates a decline, falls to a low point, and rallies upward gradually, forming the “cup.” It is often used to track an asset’s potential price reversal or continuation of an upward trend.
After HNT’s price began its downtrend on 12th April, it found support at $3.70, a price point at which it traded for a few days. It then initiated a rally back to the “rim of the cup” at $5.9, the price level at which it traded at press time.
This indicator becomes important because if HNT can break above the previous high at $5.9 (the cup’s rim), then it may continue on its upward trend and rise by another 30%.
An assessment of the coin’s key momentum indicators showed a steady rise in the demand for the altcoin, suggesting the possibility of a break above the “cup’s rim.”
For example, HNT’s Relative Strength Index (RSI) was 61.53 and in an uptrend at press time. The value of this indicator signaled that market participants preferred to buy HNT rather than sell their holdings.
Further, the coin’s Chaikin Money Flow (CMF), which measures the flow of money into and out of the asset, rested above the zero line at 0.03 at the time of press.
Is your portfolio green? Check out the Helium Profit Calculator
This showed that liquidity inflow into the HNT market driven by new demand exceeded the amount of capital removed by its traders.
While HNT appeared poised to continue its uptrend, it is key to note that if the “cup’s rim” forms a resistance level for HNT, this may send its price seeking support at the $3.70 price level once more.
