The token recently rebounded from a major support level and started moving north on the price chart
The upward momentum seems likely to continue as indicators show favorable conditions for further gains
In the past 24 hours, HNT has increased by 12.50%, despite a decline of 16.60% over the past week. In fact, as of the time of writing, its monthly performance is 20.14%, and recent developments suggest strong potential for continued growth on the chart.
Therefore, AMBCrypto analyzed the key factors influencing HNT's current upward trend and explored possible scenarios for its future price movements.
Support is powered by HNT leverage
HNT recently rebounded from the lower support level of the ascending channel, with this price pattern outlining a clear path upward within defined support and resistance areas.
It recently rebounded from the channel support level and was further strengthened by another key level of $6.564. This double support provides additional momentum for the asset, pushing its price higher.
If the current momentum remains strong, HNT may reach $10.15. However, it must first overcome the key resistance level of $7.71 highlighted on the chart.
In technical indicator analysis, AMBCrypto observed a dominant bullish sentiment, although some uncertainties still exist.
Despite a decline in liquidity flow, HNT maintains its bullish momentum.
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 — the middle band (SMA) and the upper/lower bands, which are two standard deviations away from the SMA. These bands help identify overbought (upper band) or oversold (lower band) conditions and potential price breakouts.
As of the time of writing, HNT has rebounded from the oversold area near the lower band and is trending upward. It is expected to continue climbing towards the upper band, currently at $9.654 — this price level is very close to the technical chart target of $10.
Conversely, the Money Flow Index, which measures buying or selling pressure by analyzing price and volume to gauge market sentiment, has shown a decline.
Although the MFI remains above 50 (indicating a bullish area), the decline suggests that buying activity is slowing, possibly due to profit-taking by traders.
Traders remain optimistic about HNT's upward trend.
Coinglass's open interest data shows that traders remain optimistic about HNT's potential for a rise.
Open interest (which tracks the number of unsettled derivative contracts in the futures market) reached $7.45 million in the past 24 hours, growing by 10.98%. This surge indicates increasing participation in the HNT market, with more opening contracts.
Additionally, the funding rate is in the positive territory at 0.0152%, indicating that the market leans towards bullish positions.
The funding rate reflects which side of the market (bulls or bears) pays periodic fees to balance the difference between the spot market and the derivatives market. As shown above, a positive funding rate means that buyers (bulls) hold more open contracts.
Overall, HNT has received strong support from market participants, and the asset may continue to rise from the current level at the time of writing.