The recent performance of Helium (HNT) in the market has displayed some vulnerabilities. In the last 24 hours, the asset has experienced a 4.76% decrease, causing its monthly profit to slide to 42.97% from previous highs.
Despite this short-term setback, analysis indicates that the overall market structure remains solid, leaving room for further potential growth.
Anticipating an upswing in HNT
HNT is currently engaged in a cup and handle pattern, typically linked with substantial price increases.
While HNT has already initiated its upward trend, analysis suggests that a surge could propel the asset to reach $20, signaling a 143.27% increase and signaling the conclusion of the pattern.
Upon reaching this level, the potential for further upward momentum exists, contingent upon the market’s capacity to surpass anticipated selling pressure around the $20 mark.
A golden intersection: A favorable prospect?
Currently, a golden cross has materialized on the price chart, heralding significant momentum and bolstering the ongoing bullish trend.
This formation occurs when the blue MACD line intersects above the orange signal line. The MACD recorded 0.5498 at the time of writing, while the signal line reached 0.4557, as depicted on the chart.
Moreover, the Relative Strength Index (RSI), a gauge of the pace of price adjustments based on buying and selling activities, affirms the bullish sentiment.
With the RSI standing at 62.04, indicative of active buying in the market, sustained gains may follow if the RSI remains below the overbought threshold of 70, as the asset continues its upward trajectory.
Increasing interest from buyers
Signals from the derivatives market point towards a positive forecast for HNT, aligning with expectations of forthcoming price upswings.
Data from Coinglass reveals that the long-to-short ratio has risen to 0.9976. This change signifies an uptick in long contracts, indicating a high probability of the asset maintaining its upward path.
Furthermore, the funding rate for HNT stands at a positive 0.0353%, illustrating that long positions aid in upholding the price differential between the spot and derivatives markets.