The Harmony price has taken a backwards step in early Tuesday trading and is currently down around 5% at $31.25.
Today’s pause comes on the back of an impressive run of form for Harmony (ONE). The ONE token has gained almost 50% since November 19th, extending its gains from the July low to around +450%. As a result, the Decentralized Application (DApps) platform’s market cap has jumped to $3.4 billion, ranking it the 54th-largest cryptocurrency behind Enjin Coin (ENJ). But despite the recent explosion, the price is around 20% below the all-time high of $0.3987 set last month. However, several bullish technical developments suggest ONE could soon achieve a new high.
The daily chart shows the Harmony price broke out a descending wedge formation on November 20th. Encouragingly, the price bounced from the top of the pattern at $0.2720 yesterday, reinforcing the breakout. However, the token is running into overhead resistance above $33.00, which is proving sticky. If Harmony punches through resistance and closes above $0.3574 (highest ever daily close), it should gain enough momentum to set a new all-time high.
Below the market, the 50-DMA at $0.2712 joins the trend to provide significant support. As long as the ONE token remains above this area, the outlook is constructive. However, a break below the trend could derail the recent rally. In that event, a logical target is the bottom of the descending wedge pattern at $0.2100.
For more market insights, follow Elliott on Twitter.
This post was last modified on Nov 24, 2021, 06:56 GMT 06:56