The Helium(HNT) price forming cup and handle pattern shows a recovery opportunity for coin holders. The altcoin currently retests a flipped support of $8.44, which could replenish the bullish momentum $12.5 breakout. A successful breakout should trigger the bullish pattern with its target expected at $16.6.
Key points:
- The cup and handle pattern may drive the HNT price above the $12.5 mark
- The $78.44 fallout would invalidate the bullish plan
- The intraday trading volume in the Helium coin is $797.5 Million, indicating a 53.5% gain.
Source- Tradingview
An unwavering downfall initiated in April plunged the HNT/USDT pair to a low of $6.59. Furthermore, the altcoin retested this level twice since last month., validating it as legitimate support.
On May 28th, the second bounce back from the $6.59 mark bolstered buyers to breach the $8.44 immediate resistance and surged 90% higher to the $12.5 mark. However, the supply pressure from above triggered a minor pullback and tumbled the HNT price by 28.8%.
The U-shaped recovery with a minor pullback indicates the formation of a cup and handle pattern. Furthermore, the falling price retested the flipped support of $8.44, and the long-tail rejection attached to today’s daily candle indicates the buyers’ attempt to defend this level.
A possible reversal from this support would encourage the HNT price to rechallenge the $12.5 resistance. If buyers breach this overhead resistance, the altcoin could pump 85% higher to the $16.6 level.
Conversely, the $8.44 fallout may slump the coin price back to the $6.6 mark.
Technical indicator
Along with the $8.44 breakout, the HNT price breached the midline of the Bollinger band indicator, giving an extra edge to long traders. However, the altcoin moving between the indicator’s upper and midline suggest a possible witch in the trader’s sentiment.
A sharp drop in ADX value(28) accentuates losing bearish momentum.
- Resistance levels- $12 and $16.7
- Support levels are $8.5 and $6.5
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