HNT Price Analysis: Bear Cycle Within Wedge Pattern Hints 28% fall

Responding to the recent sell-off in the crypto market, the Helium(HNT) price turned down from the dynamic resistance trendline. The bearish reversal slumped the altcoin 40% lower as it pierced the $9.8 support. However, today the coin price reverts to retest the breached resistance; will it sustain?

Key points: 

• The HNT price should higher price rejection candle at $9.8 resistance
• The coin sellers regain the 20-day EMA as a legitimate resistance
• The intraday trading volume in the Helium coin is $84.5 Million, indicating a 63.92% gain.

Source- tradingview

Lowering within the falling wedge pattern, the HNT/USDT pair has tumbled 83.6% from the November All-Time High of $55.2. On May 28th, the coin price rebounded from the lower support trendline and triggered a new bull cycle.

The recovery rally propelled the HNT price 76% higher to reach the aligned resistance of the 50-day EMA and resistance trendline. However, last week’s sell-off in the crypto market prevented a bullish breakout from the overhead resistance, indicating the price would continue to resonate within the pattern.

The resulting bearish reversal breaks the $9.8 support, suggesting the sellers aim for another leg down. Even though the HNT price witnessed a massive inflow today, registering an 18.3% gain, the buyers still struggled to surpass the $9.8 flipped resistance.

Thus, with a candle closing below the mentioned support, the seller may pull altcoin 28% lower to $6.74 support. Moreover, in extreme bearish conditions, the altcoin would drop to the bottom support trendline.

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Technical indicator

The recent reversal pushed the altcoin below the 20-day EMA. This EMA now acts as a valid resistance and assists sellers in preventing a $9.8 breakout.

Following an evident bullish divergence, the daily RSI slope nearing to cross above the neutral line(50%) indicates growth in bullish momentum. This crossover may attract additional buyers and bolster wedge pattern breakout.

• Resistance levels- $9.8 and $12
• Support levels are $6.78 and $5