Helium [HNT] retraced by nearly 24% from its local high at $4.5

On Saturday, 12 April, HNT saw a bullish market structure break after climbing past the recent lower high at $3.4

Helium [HNT] price retraced by nearly 24% from its local high at $4.5. On Saturday, 12 April, HNT saw a bullish market structure break after it closed past the recent swing high at $3.4. This signaled an end to the previous downtrend that began at the start of the year.

Helium bulls are on the way to forcing an uptrend

Source: HNT/USDT on TradingView

After the structure shift, HNT hit a new swing high at $4.5. It has since pulled back to $3.4, but the crypto retained its bullish structure. The next long-term support levels were at $3 and $2.25. A move to these levels may be possible for two reasons.

The first was the potential volatility around Bitcoin [BTC]. At the moment, it was unclear if BTC had already formed its local bottom. A drop below $83k could open the door for market-wide selling and affect HNT negatively. The other reason would be the lack of overwhelming buying pressure.

The OBV tested its February highs during its bullish market structure shift, but the OBV was unable to rise further. This hinted at some weakness from the bulls. If the OBV can establish an uptrend in the coming days, the chances of another Helium rally might be higher.

Source: HNT/USDT on TradingView

On the 4-hour chart, the RSI revealed that momentum slowed down over the past week. The price action highlighted that the bearish breaker block (red) at $3.7 served as resistance over the past couple of days. The OBV’s struggles to make a new high was clearer on this timeframe.

At the time of writing, HNT was trading around the 50% retracement level, and could bounce higher and beyond $3.7. This would require higher buying pressure so, traders can watch the OBV for clues of a breakout past $3.7.

The structure was bearish on the 4-hour chart, and a BTC drop below $83k would strengthen the short-term bearish bias for Helium. In this scenario, traders can look for opportunities to sell, targeting a retracement to $2.75-$3.