Over the last week, Helium (HNT) has experienced a 9.80% surge, setting the stage for a potential continuation of its upward trajectory. However, the asset has faced significant barriers amid its bullish pattern, leading to a recent downturn.
Despite the typical uptick in trading activity seen with bullish patterns, there has been a surprising lack of liquidity flow, as per findings by CryptoCrypto.
$7.8950 Resistance Level Sparks HNT’s Downturn
HNT has hit a roadblock at the $7.8950 mark, a level characterized by notable selling pressure, resulting in a further dip in its valuation.
This resistance marks the upper limit of the ascending triangle formation within which HNT has been operating.
Traditionally, prices tend to move between the upper resistance and lower support levels of this pattern before potentially breaking out to the upside.
A clear breakout from this formation for HNT could be facilitated by the descending line acting as a foundation, possibly propelling HNT back towards the $10 range or higher. Conversely, a failure to maintain this pace might see HNT regress towards the lower support level of the pattern.
CryptoCrypto’s supplementary analysis suggests that the descending trend is projected to remain intact for the time being.
HNT’s Market Sentiment Favors Bulls as Traders Take Control
Market dynamics exhibit a prevailing bullish sentiment for HNT, evidenced by indicators like the Parabolic SAR (Stop and Reverse) and the Relative Strength Index (RSI).
The Parabolic SAR, represented by dots above price bars in a downtrend and below in an uptrend, currently lies below the price bars for HNT. This positioning hints at the potential for upward movement, despite recent retracements from the resistance threshold.
Similarly, the RSI reinforces this bullish stance, currently standing at 53.30, above the neutral level.
However, a deeper analysis of the RSI trend line proposes a potential mild retreat towards the support trend line. This could momentarily depress HNT’s valuation before triggering an upward trajectory in both the RSI and HNT’s market value.
HNT’s Progress Towards the Upside May Face a Setback
Despite conducive conditions for an upward market shift, HNT’s advancement could be hindered by a notable decline in trade volume.
According to CoinMarketCap, there has been a 46.32% drop in HNT’s trade volume, currently standing at $9.07 million, positioning it as the 347th in the cryptocurrency volume rankings.
This volume slump, combined with a lack of significant price movement, indicates that traders have yet to fully rally behind the projected upsurge. Therefore, HNT’s price surge is expected to be delayed until there is an uptick in market participation and liquidity.