- Helium needed to close a daily session above $4.24 to flip the daily market structure bullishly.
- The recent bounce to $4.18 could be followed by a range formation above $3.3.
Helium [HNT] had fallen 68.5% from the December resistance of $9.54 to retest the psychological $3 support last week. This amounted to a 68.5% price drop in just over two months.
A lack of strong buying and the persistent downtrend since December meant the $3.3 zone was the next bearish price target.
Helium was yet to break the downtrend despite a 28% bounce
Source: HNT/USDT on TradingView
The market structure of HNT on the daily chart was bearish. The recent lower high at $4.24 was highlighted in orange and remained the level to beat to shift the structure bullishly.
Over the past two weeks, the bearish momentum has begun to weaken.
A bullish divergence occurred in the first week of February, when the price made lower lows, but the RSI made higher lows.
Following this, Helium managed to bounce from the $3 round number support, gaining 28.5% in under a week.
This bounce was not borne on high buying volume, according to the A/D indicator. This volume indicator remained on its downtrend since mid-December, although it saw a bounce over the past ten days.
Source: Coinglass
The 1-week liquidation heatmap noted the large liquidity cluster around $3.6. This area was tested on the 10th of February, and prices quickly jumped to $4.19. This swift bounce was likely carried higher, in part, by a cascade of short liquidations.
Since then, the volatility has fallen, and HNT has consolidated under the $4 level. The magnetic zone at $3.3 could beckon the token prices to it over the coming days.
Traders should be prepared for a range formation between $3.3 and $4.2-$4.5. In the near term, the $3.6 zone would likely halt the bearish advance.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
