Published 11 hours ago
A bullish recovery from the newly obtained $4 support sets the Helium coin price to hit a monthly resistance trendline. However, the low volume aligned with this recovery hints the prices are witnessing a minor relief rally. Thus, a potential reversal from the falling trendline could extend the ongoing correction below $3.33.
Key points:
- The Helium price could resume prevailing correction from the downsloping trendline
- The resistance trendline may trigger a new recovery rally
- The intraday trading volume in the Helium coin is $17.5 Million, indicating a 24% gain.
Source- tradingview
The Helium holders witnessed a steady downfall in August’s second half which plunged the altcoin price to a new 2022 low of $3.28. Moreover, the technical chart shows a descending trendline has provided dynamics3 resistance to these prices.
The multiple retests to this trendline indicate the traders are actively selling at this resistance. On September 11th, the coin chart showed a bearish reversal from the trendline and tumbled the price 29.3% lower to hit the $4 mark.
However, the buyers manage to rebound the price from this psychological support with a tweezer bottom candle. This bullish candle pattern indicates the altcoin obtained suitable footing to enforce further rally.
As a result, the Helium price showed an 8.3% recovery in the last two days. However, the volume activity decreasing indicates weakness in buyer commitment. Thus, with such scenarios, if altcoin hits the trendline, the prices will likely revert lower.
A potential bearish reversal could slump the Helium coin price below the $4 mark and revisit the bottom low support of $3.28.
On a contrary note, if the buyers manage to break this resistance, it will indicate the market sentiment has flipped from selling on rallies to buying on dips. This trendline breakout could offer a buying opportunity to interested traders.
Technical indicator
Relative Strength Index: the RSI slope is wavering below the midline, indicating the market sentiment is bearish.
EMAs: the downsloping crucial EMAs(20, 50, 100, and 200) accentuate an overall downtrend and multiple resistance for a potential upswing. Moreover, the 20-day EMA aligned with the resistance trendline forms an additional barrier.
- Resistance levels- $5.7 and $7
- Support levels- $4 and $3.33
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
