HNT Technical Analysis: V-shaped Recovery Leads into Flag Pattern
The HNT coin price shows a flag pattern formation after a sharp V-shaped recovery of more than 50%. Will bears bring the flag down?
Helium, a blockchain-powered network, aims to empower the decentralization of Internet of Things (IoT) devices. The network launched its mainnet in 2019. This allows low-powered wireless devices to communicate with each other and become Nodes or Hotspots.
These nodes can perform actions as a wireless gateway or a blockchain mining device. The miners are rewarded in the native currency of Helium, HNT.
Let us move ahead to read about the Helium technical analysis.
Past Performance of HNT
The HNT coin price rose more than 50% after finding demand near $25 leading to a V-shaped recovery. However, post-recovery, the price underwent a consolidation range for the last two weeks. Therefore, the price action shows a flag pattern in the daily chart.
HNT/USD Daily Chart
HNT Technical Analysis
HNT coin price shows frequent higher price rejection near the utmost resistance of the flag pattern. Moreover, the recent fall of $14.64% in the last 24 hours shows an increased trend momentum.
The RSI indicator at 51% shows a sudden decline in the slope as it breaks below the 14-day SMA in the daily chart. The indicator remains neutral, but the collapse of the central line will give a sell signal.
The MACD indicator shows a fall in the MACD line as it approaches the signal line to give a bearish crossover in the daily chart. Additionally, the trend in bullish histograms comes to an end, signaling a sell signal.
Therefore, the technical indicators project a sudden growth in bearish sentiments due to the bloodbath in the crypto market. That is why the bearish breakout of the flag pattern is most likely.
The consolidation in HNT coin price is within the flag pattern in the daily chart. However, despite being a bullish continuation pattern, the situation shows a high likelihood of a bearish breakout.
According to the pivot points, the crucial support levels are at $35 and $25. And, on the opposite end, the resistance levels are at $47 and $57.
Back to the list