Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin has been volatile in recent days as bulls and bears battled for control of the $39k area. A move past $39k-$40k for Bitcoin could see some life from the bulls. On the other hand, the long-term macroeconomic conditions of inflation, uncertainty and fear did not paint a pretty picture for the crypto sphere and also for Harmony.
ONE has seen a sharp decline in January and the downward trend has not stopped yet. However, it traded above a support level and a demand zone, and could bounce back quickly.
Over the past month, the USD 0.164 level has flipped from support to resistance and has also been retested as confirmation of resistance in recent weeks. This didn’t bode well for ONE. However, it also presented the possibility that the price could range between the $0.121 support and $0.164 resistance, entering a slightly volatile phase of accumulation in the coming weeks.
Therefore, the $0.121 level and the $0.106 level, which is the 27.2% Fibonacci extension level, are likely to halt the advance of the bears at least temporarily. To turn the bias into bullish, a long-term investor would need to see ONE break above $0.164 and roll it back to support.
Until then, the outlook for the daily timeframe would be bearish. In the south, the USD 0.106 and USD 0.098 levels could serve as support.
The RSI stayed below the neutral 50 line and stood at 38 at the time of writing, showing that the bearish momentum was strong. However, in recent weeks, the price has leveled lows at $0.125 as the RSI made higher lows. This exaggerated bullish divergence could cause a bounce.
The MACD has also been below the zero line to highlight the overall bearish pressure over the past few months. The CMF showed significant capital flow out of the market, while the OBV moved sideways and lower.
The indicators showed that selling pressure prevailed. It was possible that Harmony could see a rise from the USD 0.121 support level in the long term, but the trend and market structure remained bearish. The $0.16 area would need to be flipped from supply to demand to change this longer-term bias.