Helium’s digital asset (HNT) has displayed a strong upward trend after breaking out from a bullish flag formation on the daily chart, with the current price standing at $7.87, marking a 19.38% increase within the last 24 hours.
This price surge is coupled with a notable surge in trading volume, up by 176.42% to reach a total volume of 51.86M.
Approaching the crucial resistance level at $7.90, HNT appears poised for potential further gains.
Backed by positive technical signals and a growing market sentiment, there is a possibility that the cryptocurrency might be on the cusp of a significant upsurge, possibly aiming for the $11 mark in the foreseeable future.
Implications of the Bullish Flag Breakout for HNT
Helium’s breakout from a bullish flag configuration signifies a strengthening bullish trend. Typically, a flag pattern emerges after a sharp upward movement, followed by a consolidation phase before seeking higher levels.
This breakout suggests a continuation of the uptrend, with the critical resistance level at $7.90 playing a pivotal role. A successful breach above this level could pave the way for a push towards $11, making it a crucial juncture for traders to monitor.
With the Relative Strength Index (RSI) for HNT at 68.48, nearing the overbought zone, while this may hint at a potential short-term retracement, an RSI ranging between 70-80 often aligns with robust bullish trends.
Unless Helium encounters a sharp correction, the cryptocurrency is likely to sustain its upward trajectory.
Influence of HNT’s Social Dominance on Price Movement
Over the last 24 hours, HNT’s social dominance has climbed from 0.156% to 0.167%, indicating an increasing level of awareness and discussions surrounding the token. This uptick could result in heightened market interest.
Elevated social dominance frequently propels price fluctuations as traders take note of the expanding influence of the digital asset. The surge in social attention might potentially bolster HNT’s momentum, supporting its advance towards higher price levels.
Insights from Liquidation Data on Market Sentiment
An analysis of HNT’s liquidation statistics reveals a prevailing bullish sentiment in the market. Liquidated shorts amounted to $5.27K, surpassing the figure for longs at $1.45K.
This disparity indicates a growing inclination among traders towards expecting upward price movements, reinforcing the current bullish trend. As short positions are compelled to close, the resultant buying pressure is expected to further propel the price upwards.
Rising Open Interest
The Open Interest for HNT has surged by 18.29%, reaching $12.27M. This notable uptick signifies enhanced trader involvement and a rising confidence in HNT’s potential for further price appreciation.
As more positions are opened, the increase in Open Interest bolsters the argument for sustained upward momentum in HNT’s price action.
Conclusion: Can HNT Reach $11?
The breakout from the bullish flag formation, coupled with growing social dominance and rising open interest, indicates a strong bullish outlook for HNT. A successful breach of the $7.90 resistance level could propel the token towards the $11 mark.
However, with the RSI signaling a potential short-term pullback, the sustainability of the bullish momentum will determine the trajectory of HNT’s price, which is likely to continue its upward trend if the current market sentiment persists.