The bull market returns after a 50% jump in support
The price of HIVE saw a sudden rise after a perfect return to an important level of technical support, bringing ATH back to the center of its concerns.
Monday saw a remarkable return to form for Hive (HIVE). The decentralized data-sharing network for content creators jumped 30% as the Bulls tried to narrow the loss to 40% from Friday’s all-time high. The strong rebound has taken Hive’s market cap back above $ 1 billion and is poised to reclaim its place among the top 100 most valuable cryptocurrencies. The recent strength is undoubtedly due to fears about the demise of the Omicron covid variant. Confidence returned to the crypto market, helping Bitcoin rally nearly $ 4,000 from Friday’s low and triggering large gains in altcoins.
As we expected, the weakness at the end of last week resulted in a buy as price neared the support level of $ 1.80:
“A logical support level is $ 1.8000 which offered resistance ahead of the impulsive rally. In my opinion, buyers should emerge if the price moves towards the $ 1.8000 level. Based on this, a prudent trading strategy would be to let the price adjust to the overbought condition and accumulate a reduction towards the support.“
However, the rally that followed is extreme, leaving HIVE vulnerable to profit taking.
What to expect next
The 4 hour data chart shows that the price of HIVE is in a strong uptrend. As a result, the relative strength index is close to overbought. However, a push above $ 3.00 could encourage aggressive buying, despite the high RSI.
In theory, as long as HIVE stays above $ 1.80, the outlook is good. But I expect volatility to remain high over the next few sessions. Therefore, the token can take another peek below $ 2.00 before going up.
Based on that, I’m on the close at this level, waiting for a better entry point on a pullback.
HIVE price table (4 hours)
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