- Helium’s press time bullish structure hinted at the chance of establishing an uptrend
- The 4-hour chart’s OBV could give early signs of the next HNT trend
Helium [HNT] retraced by nearly 24% from its local high at $4.5. On Saturday, 12 April, HNT saw a bullish market structure break after climbing past the recent lower high at $3.4. This indicated an end to the previous downtrend that had been in play since January’s end.
Helium bulls are on the way to forcing an uptrend
Source: HNT/USDT on TradingView
After the bullish structure break, HNT hit a local high at $4.5. It has since retraced to $3.4, but the crypto retained its bullish structure. The next long-term support levels were at $3 and $2.25. A move to these levels may be possible for two reasons.
The first is the potential volatility around Bitcoin [BTC]. Right now, it is unclear if BTC even formed its local bottom. A drop below $83k could usher in market-wide selling and affect HNT negatively. The other reason would be the lack of overwhelming buying pressure.
The OBV tested its February highs during its bullish market structure shift, but the OBV was unable to climb higher. This alluded to some weakness from the bulls. If the OBV can establish an uptrend in the coming days, the chances of another Helium rally might be higher.
Source: HNT/USDT on TradingView
On the 4-hour chart, the RSI revealed that momentum slowed down over the past week. The price action highlighted that the bearish breaker block (red) at $3.7 served as resistance over the past couple of days. The OBV’s struggles to make a new high was clearer on this timeframe.
At the time of writing, HNT was trading around the 50% retracement level, and could bounce higher and beyond $3.7. This would require higher buying pressure so, traders can watch the OBV for clues of a breakout past $3.7.
The structure was bearish on the 4-hour chart, and a BTC drop below $83k would strengthen the short-term bearish bias for Helium. In this scenario, traders can look for opportunities to sell, targeting a retracement to $2.75-$3.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
