- HNT seemed to be on the rise over the past six weeks.
- The Fibonacci retracement levels and the OBV showed that a move past $9 was possible.
Helium [HNT] is up 47% in the last four days. By doing this, it turned the market structure bullish on the one-day price chart.
However, the $9 resistance zone had rejected the HNT bulls in December and could do so again.
The technical indicators pointed to a strong bullish bias for the token. Combined with the recent gains, it seemed likely that the $9 area could be breached on this attempt.
Research into the idea of reach formation
AMBCrypto has plotted an HNT range that extends from $5 to $8.9, with a mid-range of $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 success.
Alternatively, the OBV’s uptrend in January showed that buyers were ruthless.
Combined with the break in the bullish market structure on January 27, a break above $9.6 seemed more likely than a rejection. However, this could depend on a bullish Bitcoin [BTC].
Source: HNT/USDT on TradingView
Another factor supporting the breakout idea was the Fibonacci retracement levels (yellow). This 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 supported by the Fib levels.
Assessing market sentiment
The OBV and the RSI showed a clear bullish bias in the market, despite the volatility of the past month. Still, the Open Interest chart showed sentiment was bearish for most of January.
Source: Mint glass
Coinglass also noted that Open Interest has declined since January 1. There were some days where the OI spiked higher alongside the price, such as on January 9 and 10.
How much is 1, 10 or 100 HNT worth today?
The declining OI for the rest of the time underlined the bearish sentiment among speculators.
Since January 25, the OI has been higher alongside the HNT prices. This was a sign of strong bullish sentiment and willing buyers in the futures market. So HNT could go past the $9 mark.