Hathor (HTR) broke above a longer term ascending support line on April 26. The daily RSI reached a new all-time low four days later.
HTR has been declining since reaching an all-time high of $2.49 on November 21, 2021. It made a lower high (red icon) on January 4, 2022, then resumed its downward movement at an accelerated rate.
In February and March, the price bounced off the long-term ascending support line (green sign) twice. Despite the bounce, it failed to move higher and broke the line in April. Before the breakdown, the line was in place for 335 days. A breakdown from such a long-term line usually indicates a break in the market structure.
On May 9, HTR reached a new yearly low of $0.28. The price is now very close to its 2021 low of $0.25.
RSI divergence trend line breaks
The daily time frame shows that the daily RSI generated a fairly bullish divergence (green line) in the January to March period.
However, the RSI has since fallen below its ascending support line and has since validated it as resistance (red sign). This suggests that lower prices are on the horizon for HTR.
While the daily RSI fell to its all-time low on April 30, it has not generated any bullish divergence so far. If it manages to retest the previous ascending support line, it will lay the groundwork for a potential bullish reversal.
Until then, the trend remains bearish.
wave count analysis
cryptocurrency trader @AltstreetBet HTR tweeted a chart saying the correction may be complete.
It is possible that the entire decrease is part of a five-wave downward movement (White) since the all-time high. Waves one and three have very similar lengths, so it is likely that wave five will be shorter.
If Wave One has a length of 0.382 in Wave Five, HTR will hit a low of $0.26.
A look at the sub-wave count supports this possibility as it shows that HTR is in the fifth and final sub-wave (black) of wave five.
As a result, once this correction is complete, a significant upward movement is likely.
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