Helium (HNT) price has been on the rise despite the broader market downturn. What could be behind this? Although HNT is currently in an uptrend, several indicators suggest the strength of this trend may not be as solid as it seems.
The ADX reveals a weakening trend, with HNT's ADX dropping significantly to 13.28, down from a strong reading of 40 on September 18. This signals a major weakening in the strength of the current trend.
The ADX (Average Directional Index) is a technical indicator that helps determine the strength of a trend, regardless of its direction. When the ADX is above 25, it generally indicates that the trend is strong and likely to continue. Values below 20 suggest a weak or non-existent trend.
With HNT's ADX now well below the 20 threshold, this points to a lack of momentum behind the current price movement. Even though HNT is still in an uptrend, the low ADX suggests that the trend lacks the necessary strength to sustain itself. This weakness could result in a reversal as it becomes more susceptible to selling pressure or a shift in market sentiment.
HNT's RSI is currently at 50.21, reflecting a neutral stance in terms of market momentum. The RSI (Relative Strength Index) oscillates between 0 and 100, with readings above 70 suggesting overbought conditions. HNT's positioning leaves the door open for further price growth, as the RSI has not yet indicated an overheated market.
HNT's EMA lines are currently positioned in a bullish formation, having formed a golden cross on September 23. This indicates the potential for a sustained upward trend. However, despite this positive formation, the distance between the EMA lines remains relatively narrow, suggesting the trend isn't fully established or strong yet.
While the current EMA setup points to bullish potential, HNT has been facing resistance at the $8.00 level. If it manages to clear this resistance, it could rise to $8.70, offering a potential 10% gain. However, with the ADX indicating a weak trend, there’s a real possibility that the momentum may fade, leading to a potential drop to $6.30, a substantial 20% decline.
