Harmony (ONE) had suffered a major sell-off at the start of April. The coin in fact hit the lowest level since the tail end of February and was looking bearish. But so far, it seems like the token is rebounding. How long can this uptrend last? Learn more below but first, here are key takeaways from the article:
Harmony has managed to maintain strong support at $0.1130 in recent weeks.
The coin has surged by 6% in the last 24 hours albeit it remains 10% down for the week.
The rally over the last few days seems unlikely to last that long.
Data Source: Tradingview
Harmony (ONE) – Why the recent uptrend will fade?
There is a very big difference between a rebound and a trend reversal. When coins go through a sustained bearish period, they are likely to rebound slightly but overall, the bearish conditions still remain. This is the exact case with Harmony (ONE).
Although the coin has posted some decent gains in the last few days, we don’t expect the medium-term bearish trend to reverse. In fact, ONE still remains well below its 25- and 50-day SMAs. Besides, a look at the chart shows that coin has formed an inverted cup and handle pattern.
These two indicators suggest that a bearish trend is still expected. Perhaps the good news for ONE investors is the fact that the coin is still trading above the crucial support zone of $0.113. But if this price is breached, more losses will follow.
How to play the Harmony (ONE) setup?
There is a massive downside risk with Harmony right now. The best thing to do as an investor is to watch the price action this week. If bulls manage to maintain the $0.11 support, then you can buy and exit at 20% gains max.
The potential upside for ONE remains significantly low. But if the support is breached, give it another week to consolidate before you buy.