Harmony (ONE) announces an extensive rebound – Will the uptrend last?
Harmony (ONE) has been on a journey of rebounds lately after seeing a continuous decline in the past few months.
Some Harmony (ONE) investors are wondering; if this is the start of an uptrend that will last or if it is simply a short-term blip.
On-chain data shows that there is still a lot of selling pressure on Harmony (ONE).
The number of addresses holding ONE has been declining steadily since March 2020.
This indicates that many Harmony (ONE) investors may be losing faith in the altcoin and cashing out.
To answer this question, there are a few things to note:
- In recent weeks, support for Harmony has remained quite solid at $0.1130.
- The cryptocurrency increases by 6% in the last 24 hours, but it is still 10% below for the week.
- It’s doubtful the rally will continue for much longer.
Harmony (ONE): Why the recent uptrend may not last?
A rebound differs considerably from a trend reversal.
When assets go through a long period of bearishness, they are more likely to bounce back slightly.
But in general, the bearish trends will continue; this is precisely the scenario with Harmony (ONE).
It is highly unlikely that Harmony (ONE) will begin a sustained uptrend anytime soon.
The cryptocurrency is still very much in a bear market and any rallies should be treated with caution.
The MACD indicator on the Harmony (ONE) weekly chart is currently in bearish territory.
This suggests that the current rebound could be short-lived.
Despite the price’s recent gains, we don’t expect the medium-term bearish trend to reverse.
In reality, ONE is still well below its 25- and 50-day SMAs; furthermore, a look at the chart shows that coin has formed an inverted cup and handle pattern.
The MACD and RSI continue to indicate that a bearish trend is likely.
Perhaps the good news for ONE investors is that the coin is still trading above the key support level of $0.113, despite recent gains.
But if this price is broken, even greater losses will ensue.
Harmony (ONE) has been on a rebound journey in the past few days. The altcoin is up by almost 9% in the last 24 hours.
This price surge comes after Harmony announces that it will be launching its mainnet on June 25th.
The Harmony team also reported that its validators have already started staking ONE token.
The run-up to the mainnet launch has been good for Harmony as the price of the coin has doubled since mid-May.
But can this rally be sustained? Let’s take a look at the charts and find out.
Setting up and playing Harmony (ONE)
There is a lot of danger in investing in Harmony right now.
The most important thing for an investor to do is to keep an eye on the price movement this week.
If bulls can maintain the $0.11 support, you may buy and sell at a maximum of 20% gains.
The potential for ONE is still incredibly limited; however, if the support level is broken, wait another week before buying.
The altcoin had surged to $0.12 following the launch of its mainnet.
However, the token has been on a downtrend ever since and is down 50% from its all-time high of $0.22.
The market might have already priced in the mainnet launch, which is why we are seeing a strong rally in the weeks leading up to it.
Harmony (ONE)’s success will depend on how well its mainnet performs and whether or not it can get listed on major exchanges.