• The token recently bounced off a major support level and started moving northwards on the price chart

  • The rally looks set to continue as indicators show favorable conditions for further gains

In the past 24 hours, HNT is up 12.50% despite a 16.60% drop over the past week. In fact, its monthly performance is 20.14% at press time, with recent developments hinting at strong potential for continued growth on the charts.

Therefore, AMBCrypto analyzes the key factors influencing HNT’s current upward trend and explores possible scenarios for its future price movements.

Support is the lever that HNT drives

HNT recently bounced off the lower support of an ascending channel, with the price pattern outlining a clear path to the upside within defined support and resistance areas.

The recent bounce from the channel support was further strengthened by another key level at $6.564. This double support provided additional momentum to the asset, pushing its price higher.

If the current momentum remains strong, HNT could reach $10.15. However, it must first overcome the critical resistance level of $7.71 highlighted in the chart.

In the technical indicator analysis, AMBCrypto observes a predominantly bullish sentiment, although some uncertainties remain.

HNT maintains bullish momentum despite declining liquidity flows

The market sentiment for HNT remains bullish, with both the Bollinger Bands and the Money Flow Index (MFI) supporting its potential for further gains.

Bollinger Bands use three lines to measure market volatility - a middle band (SMA) and upper/lower bands that are two standard deviations away from the SMA. These bands help identify overbought (upper band) or oversold (lower band) conditions and potential price breakouts.

At press time, HNT has rebounded from the oversold region near the lower band and is trending upward. It is expected to continue climbing to the upper band, currently located at $9.654 – a price level that is very close to the technical chart target of $10.

In contrast, the Money Flow Index, which measures market sentiment by analyzing price and volume to gauge buying or selling pressure, fell.

While the MFI remains above 50, which indicates bullish territory, the decline suggests a slowdown in buying activity, possibly due to profit-taking by traders.

Traders remain optimistic about HNT's uptrend

Coinglass’ open interest data shows that traders remain optimistic about HNT’s potential to move higher.

Open interest, which tracks the number of unsettled derivative contracts in the futures market, reached $7.45 million in the last 24 hours, up 10.98%. The surge indicates growing participation in the HNT market and the number of open contracts.

Moreover, the funding rate was in the positive territory at 0.0152%, suggesting a bias in favor of long positions.

The funding rate reflects which side of the market (long or short) pays the regular fee to balance the difference between the spot market and the derivatives market. As shown in the above figure, a positive funding rate means that buyers (longs) hold more open contracts.

Overall, HNT has strong support from market participants, and the asset is likely to continue rising from press time levels.