Harmony (ONE) experienced a significant sell-off in early April. The coin fell to its lowest level since late February and looked vulnerable. For now, however, the token appears to be bouncing off its lows. How long can this upward move last? Read on for more details, but first the key takeaways:
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In recent weeks Harmony has held strong support around $0.1130.
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The coin is up roughly 6% in the last 24 hours, though it remains about 10% down on the week.
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It seems unlikely that the recent rally will sustain at the same pace for much longer.
Data source: TradingView
Harmony (ONE) – Why the recent rally may be weakening
There is a big difference between a bounce and a trend reversal. When coins come out of an extended bear phase, they often show short-lived rebounds while the broader bearish conditions persist. That appears to be the case with Harmony (ONE).
Although the token has posted decent gains over the past few days, a medium-term bearish reversal is not yet evident. ONE remains well below its 25- and 50-day simple moving averages (SMAs). In addition, the chart shows a potential inverted cup-and-handle pattern.
These indicators point to the continuation of bearish pressure. The one encouraging sign for ONE holders is that the coin remains above a key support zone near $0.113. If this level is breached, further losses are likely.
Is now a good time to buy Harmony (ONE)?
Harmony currently carries significant downside risk. The prudent approach for investors is to monitor price action closely this week. If bulls can hold support around $0.11, a tactical buy could be considered with a potential take-profit target of up to roughly 20%.
Upside potential for ONE appears limited for now. If the support level fails, allow the price another week to consolidate before committing new capital.