[HNTUSDT] Distribution and Potential Horn Top
The HNTUSDT pair shows a potential distribution pattern, with volume analysis indicating a bearish outlook. The volume during the rally to BCLMX (buying climax) is less than the sell-off volume to AR (Automatic rally), indicating that selling pressure is overtaking buying enthusiasm. This is often seen when large players are distributing their holdings to the market, preparing for a potential price drop. This is a typical sign of distribution, where higher prices are not supported by increasing volume, suggesting a lack of buying pressure.
Additionally, the formation of a horn tops pattern, characterized by two high peaks with a lower peak in between, supports the distribution scenario. The horn tops are indicative of a market struggling to push higher. Traders should note the volume profile during these peaks, as a divergence in volume – high volume on the left horn and diminished volume on the right – can further validate the pattern.
If this pattern continues, we can expect HNT to make a corrective move upwards, potentially creating another peak, before falling. The key signal for a bearish move will be a strong break below the current distribution pattern with accompanying high volume, confirming the pattern and indicating a possible continuation to the downside with a target of around $6. However the horn top is a great performer post break out which could lead to further downside. Stop losses and buy orders set by retail traders around $6 could be quickly wiped.
Traders should monitor the volume for confirmation of the trend. If the volume remains higher on down moves and lower on up moves, it would reinforce the distribution signal and the potential for a downward breakout.
Here's more information about the the horn top pattern: thepatternsite.com/hornt.html
Additionally, the formation of a horn tops pattern, characterized by two high peaks with a lower peak in between, supports the distribution scenario. The horn tops are indicative of a market struggling to push higher. Traders should note the volume profile during these peaks, as a divergence in volume – high volume on the left horn and diminished volume on the right – can further validate the pattern.
If this pattern continues, we can expect HNT to make a corrective move upwards, potentially creating another peak, before falling. The key signal for a bearish move will be a strong break below the current distribution pattern with accompanying high volume, confirming the pattern and indicating a possible continuation to the downside with a target of around $6. However the horn top is a great performer post break out which could lead to further downside. Stop losses and buy orders set by retail traders around $6 could be quickly wiped.
Traders should monitor the volume for confirmation of the trend. If the volume remains higher on down moves and lower on up moves, it would reinforce the distribution signal and the potential for a downward breakout.
Here's more information about the the horn top pattern: thepatternsite.com/hornt.html