Over the past day, HNT has experienced a rise of 12.50%, following a 16.60% decline in the previous week. Despite this, its monthly performance currently stands at 20.14%, indicating promising potential for sustained growth in the near future.
Therefore, CryptoCrypto has examined the fundamental factors driving HNT’s ongoing upward trend and has delved into potential scenarios for its future price movements.
Key Support Driving HNT’s Momentum
HNT recently bounced back from the lower support level within an ascending channel, a pattern that outlines a clear trajectory for upward movement between defined support and resistance levels.
The recent rebound from the channel’s support was further reinforced by a critical level at $6.564. This dual support has injected additional momentum into the asset, propelling its price upwards.
Should the current momentum hold steady, there is a possibility for HNT to reach $10.15. However, it needs to overcome a significant hurdle at $7.71 before achieving this milestone.
In its analysis of technical indicators, CryptoCrypto noted a prevailing bullish sentiment, although certain uncertainties still persist.
HNT’s Bullish Outlook Despite Liquidity Flow Decrease
Market sentiment for HNT remains bullish, with the potential for further upward movement supported by both the Bollinger Bands and the Money Flow Index (MFI).
Bollinger Bands measure market volatility through three lines – a middle band (SMA) and upper/lower bands positioned two standard deviations from the SMA. These bands help identify overbought (upper band) or oversold (lower band) conditions and potential price breakouts.
At present, HNT has rebounded from the oversold region near the lower band and is showing an upward trend. It is likely to continue its ascent towards the upper band, which is positioned at $9.654—a level closely aligned with the technical chart target of $10.
Conversely, the Money Flow Index, which assesses market sentiment by analyzing price and volume to gauge buying or selling pressure, displayed a decline.
Although the MFI remains above 50, indicating a bullish phase, the downtrend signals a slowdown in buying activity, possibly due to traders taking profits.
Traders continue to be positive about HNT’s uptrend
Traders hold a positive outlook on HNT’s potential for further upward movement, as shown by Open Interest data from Coinglass.
Open Interest, which monitors the number of unsettled derivative contracts in the Futures market, reached $7.45 million over the last day—a 10.98% increase. This surge indicates a growing interest in HNT’s market, with a rise in opened contracts.
Moreover, the Funding Rate, with a positive reading of 0.0152%, suggests a market biased towards long positions.
The Funding Rate reflects which side of the market (long or short) pays periodic fees to balance the discrepancy between spot and derivative markets. A positive Funding Rate, as seen here, indicates that buyers (longs) hold more open contracts.
Overall, HNT enjoys robust support from market participants, indicating the potential for the asset to sustain its upward trend from its current level.