Harmony (ONE) Approaches 2020 Peak After 95% Drop Since All-Time High

Harmony (ONE) is trading in the lower portion of a corrective pattern. It has not yet shown any clear signs of a potential bullish reversal.

ONE has been falling since reaching a high of $0.38 in Oct 2021. The downward movement has so far led to a low of $0.0164 in June. Moreover, the downward movement caused a breakdown from an ascending support line that had previously been in place for 819 days.

Such long-term breakdowns often indicate that the preceding trend has come to an end. Measuring from the all-time high, the price has fallen by 95%. 

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The weekly RSI is also below 50 (red icon) and decreasing, in what is seen as a sign of a bearish trend. 

The closest horizontal support area is at $0.014, created by the previous resistance from July 2020.  The area is now expected to provide support.

Potential breakout

Cryptocurrency trader @ZAYKCharts tweeted a chart of ONE, stating that a breakout from the current pattern is likely.

The daily chart does provide a slightly more bullish outlook, since it shows that the price has been trading inside a descending parallel channel since May 12. Such channels usually contain corrective structures, making a breakout likely. 

However, the price is still trading in the lower portion of the channel, suggesting that a bullish reversal has not yet begun. 

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Similarly, while the RSI has seemingly moved above resistance at 40, it has not generated any bullish divergence yet nor has it moved above 50. As a result, these signs are not sufficient to predict a bullish breakout.

Despite the lack of bullish reversal signs on the daily, the two-hour chart allows for the possibility of bullish continuation. The reason for this is that the upward movement looks impulsive and the price is following an ascending support line.

As a result, if the price manages to create a higher low and bounce at the confluence between the ascending support line and the 0.618 Fib retracement support level, it could eventually break out from the channel.

ONE/BTC

The ONE/BTC pair is more bullish than its USD counterpart. The reason for this is that the price has been trading inside a descending wedge since the beginning of May. The descending wedge is considered a bullish pattern and has been combined with bullish divergence in the RSI. As a result, it is possible that a breakout will transpire.

For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here.