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ONE Locked in a Bearish Channel: Will ONE Overcome Heavy Selling Pressure?
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily Chart of Harmony (ONE).
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Total ONE Market Cap:Â Â $153,699,980
Circulating Supply:Â Â Â Â Â 14,106,425,937 ONE
Total Supply:Â Â Â Â Â Â Â Â Â 14,354,675,937 ONE
Max Supply:              —
The technical analysis provides an in-depth look at the Harmony (ONE). The analysis focuses on identifying key support and resistance levels, recent price movements, and possible future scenarios. By analyzing these factors, traders will gain insight into the current market condition and make better trading decisions.
The price of ONE is moving in a well-defined descending channel after making its peak in March 2024 for approximately 152 days, suggesting a bearish trend. The price is currently at $0.01086 and has been consistently forming lower highs and lower lows, indicating continued downward pressure. The descending channel acts as a strong containment for this movement, with the upper boundary serving as resistance and the lower boundary as support. This channel must be monitored closely as it continues to guide the price’s trajectory.
Key resistance and support zones are highlighted on the chart, providing crucial levels to watch. On the resistance side, the most immediate level is the Daily Resistance Zone (Pink), at $0.01571 – $0.01678. This zone is crucial for any potential bullish reversal. Should the price manage to break above this resistance, it would need to overcome the descending channel’s upper trendline and move towards the next significant resistance zone, the Daily Resistance Zone (Purple), at $0.02297 – $0.02514. Beyond this, the Weekly Resistance Zone (Blue), at $0.03734 – $0.04026, represents a more distant target, indicating where the price might face the most substantial resistance if a strong bullish trend emerges.
On the downside, the current price is on a support level at $0.01087 just above the Monthly Support Zone (Green), at $0.00850 – $0.00936. This zone is critical, as it represents a major support level that has historically provided a floor for the price. A break below this support could see the price decline further into the Monthly Support Zone (Yellow), at $0.00589 – $0.00640.
Currently at the time of writing the trading volume is at $59M, indicating a lack of strong buying interest at the current levels. A significant increase in volume would be necessary to confirm any potential reversal or breakout.
For a bullish scenario, the price must break out of the descending channel to the upside and the Daily resistance zone (Pink) at $0.01571 – $0.01678 with a noticeable increase in volume. The first target for such a move would be the Daily Resistance Zone (Purple) at $0.02297 – $0.02514, and a successful breach of this level could set the stage for further gains towards the higher resistance zone. However, as long as the price remains within the confines of the descending channel, the outlook will likely remain bearish.
Technical Indicators
Based on technical indicators on a daily time frame
The relative Strength Index (RSI) value is at 37.46 (Neutral)
Momentum (10) is at -0.00273 signaling a (Buy)
MACD Level (12, 26) is at -0.00105 signaling (Sell)
Exponential Moving Average (50) 0.01400: (Sell)
Exponential Moving Average (100) 0.01615 : (Sell)
Simple Moving Average (100): 0.01681 (Sell)
Exponential Moving Average (200): 0.01762 (Sell)
Ichimoku Base Line (9, 26, 52, 26): 0.01225 (Neutral)
Volume Weighted Moving Average (20): 0.01198 (Sell)
Hull Moving Average (9): 0.01054 (Buy)
Interpretation
The technical analysis for Harmony (ONE/USDT) on the one-day timeframe reveals a predominantly bearish sentiment. The summary indicates a strong “Sell” recommendation, with 14 indicators favoring selling, 10 remaining neutral, and only 2 suggesting a buy. The moving averages are particularly bearish, with 13 out of 15 signaling a sell, reflecting the price’s consistent decline below its recent averages. Oscillators are mostly neutral, but indicators like the RSI (37.46) suggest the price is approaching oversold territory, hinting at potential, albeit limited, relief.
From this analysis, we gather that the market is under significant downward pressure, with little sign of an imminent reversal. The strong sell signals, especially from the moving averages, suggest the bearish trend is likely to continue. However, the RSI nearing oversold conditions could indicate a possible short-term bounce, though the overall outlook remains cautious for any sustained recovery.
Liquidation Heatmap
The ONE Liquidation Heatmap reveals significant liquidation activity around the $0.01595 level. This heatmap, which visualizes leverage liquidations, shows a concentration of liquidations near this price, indicating it as a critical resistance level where many leveraged positions have been liquidated. The strong activity suggests that as the price approaches this level, it faces substantial selling pressure, likely due to traders closing positions to avoid further losses. This level is crucial to watch; breaking above it could shift market sentiment, but persistent failure to do so might reinforce the bearish trend.
Long-Term Trading Setup
We will buy in parts, we will divide our budget into 3 sections, and allocate for buying at each key support mentioned in the chart.
Here are the numbers where you can buy ONE and take profits for the trade.
Buy 1: Current
Buy 2: $0.00835
Buy 3: $0.00589
At buy 3 we will go all in because this is the lowest.
TP1: $0.01571
TP2: $0.02514
TP3: $0.04026
Conclusion
Technically speaking, Harmony (ONE/USDT) should be described more as being bearish, where the price action has been distinctly defined within a down-channel for a rather long period of time. It remains to show lower highs and lower lows, thus signaling sustained downward pressure. Key resistance levels around the Daily Resistance Zone (Pink) at $0.01571 – $0.01678 have been noted in the past as of important value, while key support areas lie around the Monthly Support Zone (Green) at $0.00850 – $0.00936. The most moving averages and almost all the technical indicators at that level show a strong bearish trend with few indications of any reversal, though it can be considered that the RSI reaching the oversold area can be an indication of a likely short-term rebound.
The liquidation heatmap further reinforces the bearish sentiment when the activity of focused liquidation occurs around the level of $0.01595, which can identify this as a major resistance point. This means that any increase will be met with huge selling pressure around that region, hence that is an important level to watch for potential shifts of market sentiment. In essence, the analysis suggests some caution since it is highly probable that bearish momentum will prevail unless significant buying volume pushes prices above key resistance levels.
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This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
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The Crypto City Trading Team