After several weeks marked by widespread corrections in the markets, this week we have seen how the two main players in the crypto market, BTC and ETH, became strong in the support zone, generating a price rebound from $40,000 and $3,000, respectively. But although this may induce us to think about the recovery of the main trend, the bearish guideline created since the beginning of December has not yet been broken, so we will have to follow very closely to the evolution of the market.
In last weeks uncertainty, we find some tokens that show more strength in the rebound from the support zone, as is the case of ONE (Harmony) that has risen more than 25% during last week. Testing its ATH, while BTC and ETH are trying to consolidate their supports.
Harmony is a blockchain platform designed to facilitate the creation and use of dApps (Decentralized Applications). The network aims to revolutionize block creation by focusing on the fragmentation of random states, allowing for improved processing and validation speed.
Its native token, ONE, is used as an incentive to attract more node operators and the Harmony Open Staking initiative encourages interaction with the network and allows users to obtain more tokens.
If we analyze the evolution of ONE’s price, we can see several aspects that set it apart from the general market situation.
In the chart we can see that there is a strong uptrend, which consolidated in October with the creation of a new ATH in the area of 0.38$. From this point corrections occurred, which have generated that secondary downtrend represented in the image.
At the beginning of the year, there was an upward movement that broke this downward trend line, but if we look at the RSI indicator we see how it bounces from the 70 zone, without producing the upward crossover, which indicates a lack of volume in the upward movement.
If we enlarge the image to a 4h timeframe, we can see it in more detail.
At the moment of the break of the downtrend, we see how the price tries to make a new high after the first pullback, but when it reaches the resistance of 0.33$, the RSI is lower than in the previous support, generating a bearish divergence that drags the price to 0.26$, where the new bullish guideline that is being generated in recent weeks is located.
During the last week we have seen how this bullish guideline was consolidated with the break of 0.33$, taking the price to the resistance zone of its ATH (0.38$), a key area to be able to consider future scenarios.
Currently, we are still detecting this lack of strength and volume in the market, but this is a circumstantial situation, because if the buying volume begins to increase considerably, we can see a breakout of its ATH.
In order to consider this bullish breakout option, the RSI would have to break above the 70 zone, which would show us the necessary strength to be able to break the resistance. In this case, the next technical targets are 0.46$ and 0.55$.
On the other hand, the current situation persists, we are likely to see pullbacks to the trend line or even to the support zones of $0.26 and $0.22, in case the trend shows signs of weakness.