- HNT has been seen range forming over the past 6 weeks.
- Fibonacci retracement levels and OBV showed that a move above $9 is possible.
Helium (HNT) is up 47% over the past four days. This reversed the market structure to a bullish one on the daily price chart.
However, the $9 resistance zone defied HNT strength in December and could do so once again.
Technical indicators highlighted a strong bullish bias for the token. Combined with the recent uptrend, it appears likely that the $9 region will be broken in this attempt.
Review scope shaping ideas
AMBCrypto projects a HNT range from $5 to $8.9, with the mid-range level being $6.95. All three levels have been important over the past six weeks.
Therefore, another rejection in the $9-$9.6 area is likely.
Alternatively, the upward trend in OBV in January showed that buyers are relentless.
Combined with the bullish market structure collapse on January 27th, a breakout above $9.6 appears more likely to be rejected. However, this may depend on the strength of Bitcoin (BTC).
Source: HNT/USDT on TradingView
Another factor supporting the breakout idea was the Fibonacci retracement level (yellow). They showed that the early January sell-off did not end below the $5.18 level, which is the 78.6% retracement.
Therefore, a move above $10.96 was likely to support the Fib level.
Market sentiment assessment
OBV and RSI showed a clear bullish bias in the market despite the volatility of the past month. However, the open interest chart shows that sentiment was bearish for most of January.
Source: Coinglass
Coinglass also noted that open interest has been decreasing since January 1st. There were days, such as January 9th and 10th, when the OI surged along with the price.
How much is 1, 10 and 100 HNT worth now?
The decline in OI for the rest of the year highlighted bearish sentiment among speculators.
Since January 25th, OI has risen along with the price of HNT. This signaled strong bullish sentiment in the futures market and willingness to buy. Therefore, HNT may surpass the $9 level.