- HNT appeared to form a range over the past six weeks.
- The Fibonacci retracement levels and the OBV showed that a move past $9 was possible.
Helium [HNT] has risen 47% and counting in the past four days. In doing so, it flipped the market structure bullishly on the one-day price chart.
However, the $9 resistance zone had rebuffed HNT bulls in December, and could do so once more.
The technical indicators highlighted a strong bullish bias for the token. Combined with the recent gains, it appeared likely that the $9 area could be broken on this attempt.
Examining the range formation idea
AMBCrypto plotted an HNT range that reached from $5 to $8.9, with the mid-range level at $6.95. Over the past six weeks, all three levels have been significant.
Therefore, another rejection from the $9-$9.6 area has a good chance of playing out.
Alternatively, the OBV’s uptrend in January showed that the buyers were relentless.
Combined with the bullish market structure break on the 27th of January, a breakout past $9.6 appeared more likely than a rejection. However, this could hinge on a bullish Bitcoin [BTC].
Source: HNT/USDT on TradingView
Another factor that supported the breakout idea was the Fibonacci retracement levels (yellow). They showed that the early January plunge did not close below the $5.18 level, which was the 78.6% retracement.
Therefore, a move to $10.96 or higher was a possibility that the Fib levels supported.
Assessing the market sentiment
The OBV and the RSI showed a clear bullish bias in the market despite the volatility of the past month. Yet, the Open Interest chart showed that sentiment was bearish for most of January.
Source: Coinglass
Coinglass also noted that the Open Interest has been declining since the 1st of January. There were some days when the OI spiked higher alongside the price, such as on the 9th and 10th of January.
How much are 1, 10, or 100 HNT worth today?
The declining OI during the rest of the time highlighted bearish sentiment amongst speculators.
Since the 25th of January, the OI has ticked higher alongside HNT prices. This was a sign of strong bullish sentiment and willing buyers in the futures market. Thus, HNT could propel past the $9 mark.
