🎯 HNT - short term profit taking
I've been watching HNT for a while during this bear market just to get an opportunity to get a position in it. This came at the end of August when bad news spread about it moving to Solana network some of its own network transactions. I'll not get into the details here as you can find this bit in the news with a search.
What I need to mention from the beginning is that I now hold a position in it, so view the below with skepticism as I am biased on this topic.
Now to the analysis!
Ever since it bottomed it has been trading in this yellow ascending channel - which on the higher timeframe looks like a bear flag (more on this later).
It has also formed a revival pattern - an ascending triangle (in blue) that you can usually find around local bottoms. This pattern usually announces a bigger upside move. You can find this pattern on many coins/tokens around 18th June bottoms this year (including ETH).
Looking at the interactions the price had with H4 200EMA (magenta), it suggests that it is preparing for a move higher. Initially it was rejected with a wick (twice), then it scrambled around it and eventually it broke above it confidently.
Today this revival pattern also broke bullish - which confirms it wants to move higher than we are now.
This brings an opportunity for a long once the price retests the previous resistance area -> entry levels around 5.40$
We can consider now the H4 200EMA as dynamic support -> stop loss around 5.05$
Since the next EMAs on H8 and 12H can present dynamic resistance areas, which are confluent with previous wick tops, and also confluent with the middle and top lines of the channel, I'm looking at two profit levels -> 1st at 6.06$-6.20$ (in green) with a RR 2:1 and 2nd at 7.22$-7.77$ (in cyan) with a RR slightly above 5:1.
As we are still in bear market conditions I don't expect HNT to pump too much - as mentioned, we are playing inside in a bear flag and we should eventually break below it.
However, short term (3-15 days), I do believe this to be a nice profit opportunity.
💎 Looking forward for your questions below. If this idea provided you value, follow for more.
What I need to mention from the beginning is that I now hold a position in it, so view the below with skepticism as I am biased on this topic.
Now to the analysis!
Ever since it bottomed it has been trading in this yellow ascending channel - which on the higher timeframe looks like a bear flag (more on this later).
It has also formed a revival pattern - an ascending triangle (in blue) that you can usually find around local bottoms. This pattern usually announces a bigger upside move. You can find this pattern on many coins/tokens around 18th June bottoms this year (including ETH).
Looking at the interactions the price had with H4 200EMA (magenta), it suggests that it is preparing for a move higher. Initially it was rejected with a wick (twice), then it scrambled around it and eventually it broke above it confidently.
Today this revival pattern also broke bullish - which confirms it wants to move higher than we are now.
This brings an opportunity for a long once the price retests the previous resistance area -> entry levels around 5.40$
We can consider now the H4 200EMA as dynamic support -> stop loss around 5.05$
Since the next EMAs on H8 and 12H can present dynamic resistance areas, which are confluent with previous wick tops, and also confluent with the middle and top lines of the channel, I'm looking at two profit levels -> 1st at 6.06$-6.20$ (in green) with a RR 2:1 and 2nd at 7.22$-7.77$ (in cyan) with a RR slightly above 5:1.
As we are still in bear market conditions I don't expect HNT to pump too much - as mentioned, we are playing inside in a bear flag and we should eventually break below it.
However, short term (3-15 days), I do believe this to be a nice profit opportunity.
💎 Looking forward for your questions below. If this idea provided you value, follow for more.
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