Can Harmony find demand above this level and what to expect if it does
Warning: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Bitcoin has been volatile for the past few days as bulls and bears battle for control of the $39,000 zone. A breakout of $39,000-$40,000 for Bitcoin could give some life to the bulls. On the other hand, the macroeconomic conditions of inflation, uncertainty and fear have not painted a pretty long-term picture for the crypto sphere and also for Harmony.
ONE saw a sharp decline in January and its downtrend has yet to be stemmed. However, it was trading above a support level and a demand zone – and may see a rebound soon.
ONE – 1D
Source: ONE/USDT on TradingView
Over the past month, the $0.164 level has moved from support to resistance and has been retested as confirmation of resistance over the past two weeks as well. This didn’t bode well for ONE. However, it also offered the possibility that the price could find itself between the support at $0.121 and the resistance at $0.164, in a slightly volatile accumulation phase in the coming weeks.
Therefore, the $0.121 level and the $0.106 level, which is the 27.2% Fibonacci extension level, can probably stop the bears from advancing at least temporarily. To reverse the bullish bias, a longer-term investor should see ONE break above $0.164 and return it to support.
Until then, the outlook would be bearish on the daily timeframe. To the south, the $0.106 and $0.098 levels could act as support.
Reasoning
Source: ONE/USDT on TradingView
The RSI remained below the neutral line of 50 and was at 38 at the time of writing. This showed that the bearish momentum was strong. However, over the past two weeks, the price has formed lows equal to $0.125 while the RSI has made higher lows. This exaggerated bullish divergence could trigger a rebound.
The MACD was also below the zero line to highlight the overall bearish pressure over the past two months. The CMF showed strong capital flow out of the market, while the OBV moved sideways and lower.
Conclusion
The indicators showed that the selling pressure had the upper hand. It was possible that Harmony could see a bounce off the $0.121 long-term support level, but its trend and market structure remained bearish. The $0.16 area should be tilted from bid to ask in order to change this longer-term bias.