HNT Technical Analysis: Phenomenal Jump Of 57% Just For Retest?

The HNT prices jump by 57% to reach the overhead resistance of $5.37, retesting the broken support trendline. Unfortunately, the post-retest reversal from the trendline shows a 7.90% fall. So, should you avoid buying Helium in hopes of riding the momentum?

Key Points:

Source - TradingView

HNT Technical Analysis

The HNT price action displays a 50% decline after the falling channel breakout from the $6.25 mark to the psychological support at $3. However, the recent increase in the buying pressure results in a 57% bullish engulfing candle retesting the broken support trendline.

Currently, the daily candle shows a bearish influence evident by the 7.90% drop, displaying a post-retest reversal. Moreover, the bearish reversal brings the prices back to the psychological mark of $5.0. Thus, decreasing the possibility of an uptrend continuation.

The speculation behind the phenomenal price jump seems to be the decision of Helium Foundation to migrate to the Solana ecosystem. The Helium (HNT) prices reversing from the support trendline and dropping under $5 increases the possibility of a downfall to the $4.0 mark.

However, if the market value reclaims the $5 mark and rises above the broken trendline, a price jump to the $6.25 mark is possible. Moreover, the increase in buying pressure can result in a prolonged uptrend to the $7.60 resistance level.

Technical Indicators

The daily-RSI slope displays a spike in the underlying bullishness as it jumps from the oversold zone to the halfway line within a single day.

Furthermore, the MACD and signal lines diminish the bearish gap to give a bullish crossover, reflecting a phenomenal increase in buying pressure.

Hence the technical indicators turn an eye to the bearish daily candle and project an uptrend possibility in HNT prices.

Resistance Levels - $5 and $6.25

Support Levels - $4 and $3.5