Helium [HNT] started the day with a bullish move, gaining 10% in value. However, the continued rally in this direction is hinged on whether the asset holds the key structural support level on the chart.
At the time of writing, HNT is now trading within a potential demand zone, marked in blue on the chart, where it could see buy orders that lead it to rally higher.
For now, the asset has the potential to reach a local high at about $0.64 if the rebound from the present support structure holds. Gains from this level would mark an additional 16% to price performance.
Notably, in the case where the price doesn’t rally from this level, there’s a high chance the price retreats lower, dropping as far as the black support line on the chart.
Weakening indicators put the HNT rally at risk
There isn’t 100% alignment on whether the asset will see a rebound from the potential demand zone into which it dropped. However, the indicator Bull Bear Power (BBP) confirms that the bulls remain active in the market with the formation of the green bar, but it also points to weakness.
Moreover, the recent bar formation, compared to previous bars, specifically in the last six days, has been the lowest yet. This suggests that compared to prior days, the bulls’ strength remains minimal.
Chaikin Money Flow (CMF), a volume-weighted indicator that tracks the buying and selling volume of an asset, shows that there’s been more selling over the past day.
Additionally, the CMF is trending within the negative zone on the chart, indicating that sellers are more dominant in the market as it stands.
As a result, if both indicators continue along their present path, HNT is likely to drop even lower in the near term.
Rising holder count keeps HNT sentiment positive
The exciting outcome around HNT has been the steady growth in the holders’ count. Data reports that the number of investors holding the asset, reached on-chain, has now reached 572,350 at the moment.
Growth in holders count is often a reflection of the long-term performance of the asset, as investors anticipate major gains.
Additionally, the sentiment has stayed high and positive. The sentiment indicator by CoinMarketCap, which tracks investors’ outlook for an asset, has a reading of 4.00.
Sentiment analysis uses a scale between -10 and 10 to determine investors’ sentiment based on their level within that scale. At the moment, the current placement marks bullish territory for price.
Final Summary
- HNT needs to hold the current demand zone to sustain its bullish momentum and target $0.64.
- Weakening bull-bear power and negative Chaikin Money Flow could push HNT toward lower support levels.
