Helium’s recent price action has shown signs of a potential bullish uptrend, with a break in the previous downtrend that had been in play since the end of January. The cryptocurrency retraced from its local high at $4.5 to $3.4 before establishing a bullish market structure. This indicates that the bulls are gaining control and could potentially push the price higher.
One key indicator to watch for the next trend in Helium is the On-Balance Volume (OBV) on the 4-hour chart. The OBV could provide early signs of the next HNT trend, as it tested its February highs during the bullish market structure shift. However, the OBV was unable to climb higher, indicating some weakness from the bulls. If the OBV can establish an uptrend in the coming days, it could signal another rally for Helium.
On the 4-hour chart, the Relative Strength Index (RSI) showed that momentum had slowed down over the past week. The bearish breaker block at $3.7 acted as resistance, with the OBV struggling to make a new high. Currently, Helium is trading around the 50% retracement level, and traders should watch for potential buying pressure to push the price above $3.7 for a breakout.
Despite the bullish structure on the 4-hour chart, a drop in Bitcoin below $83k could strengthen the short-term bearish bias for Helium. In this scenario, traders should be cautious and look for selling opportunities, targeting a retracement to levels between $2.75-$3. It is important to note that the information presented is not financial advice and is solely the writer’s opinion.
In conclusion, Helium’s recent price action indicates a potential uptrend, with bullish market structure breaks and key resistance levels to watch for potential buying opportunities. Traders should keep an eye on the OBV and RSI indicators for signs of bullish momentum and be cautious of potential market-wide effects from Bitcoin price movements. As always, it is important to conduct thorough research and consider risk management strategies before making any trading decisions.
