Harmony (ONE) price analysis 11 Jan: Is it time to book profits?

Could one of the best performing cryptocurrencies of 2021 enter a deep correction in 2022?

Smartphone with Harmony (ONE) logo                                 
Harmony (ONE) could enter a deeper correction – Photo: Alamy.com
                                

Harmony (ONE) was one of the best performing cryptocurrencies in 2021, clocking a return of about 5,500%. The blockchain’s website claims that it runs “Ethereum applications with two-second transaction finality and 1,000 times lower fees.”

The total value locked in decentralised finance projects on the Harmony blockchain has been rising consistently for the past few days, reaching $1.2bn (£880m) on 9 January, according to data from Defi Llama.

Harmony teased that it is building the Metaverse, the future of game, social and work. The blockchain was the sixth fastest-growing ecosystem, with the number of monthly developers surging by 281% between December 2021 and December 2020.

Could Harmony (ONE) climb further and continue to outperform in 2022? What do the charts suggest? Read the ONE price analysis to find out.

Harmony weekly chart
Harmony weekly chart – Credit: Currency.com

Harmony price technical analysis: weekly chart

ONE’s price recovered sharply in December, indicating that the bulls aggressively purchased the dip. The ONE/USD pair is currently facing stiff resistance near its all-time high. This suggests that traders are attempting to defend the overhead resistance at $0.30.

The negative divergence on the relative strength index (RSI) indicates that the bullish momentum may be weakening, however. If the price continues to drop, it may need to find support at the uptrend line.

A strong rebound off this level would suggest that the overall trend remains bullish and traders are accumulating on dips. The bulls could then attempt to clear the overhead hurdle at the all-time high.

If they manage to do that, the pair could start the next leg of the uptrend, which could reach $0.43. On the other hand, if the price breaks below the uptrend line, the pair could drop to the strong support zone at $0.21 to $0.20. A break and close below this zone could signal the start of a deeper correction.

Harmony daily chart
Harmony daily chart – Credit: Currency.com

Harmony price technical analysis: daily chart

ONE’s price hit a roadblock at the downtrend line. Repeated failures to clear this hurdle may have resulted in profit-booking by short-term traders. This has pulled the price back to the uptrend line.

If the price rebounds off the uptrend line, the buyers could make another attempt to push the pair above the downtrend line. If they succeed, the pair could go on to challenge the all-time high. A break and close above this level could signal the resumption of the upward move.

Conversely, if bears sink the pair below the uptrend line, it may indicate that traders are rushing to the exit. That could pull the price down further to the next support level at $0.22.

If that were to occur, the bulls would have to push and sustain the price above the downtrend line to indicate that the correction is over.

If that does not happen, the price could turn downwards and plunge below $0.22, which could see the price fall to $0.16.

Harmony: buy or sell this week?

Harmony (ONE)’s price analysis shows that the bulls are attempting to defend the uptrend line. If they succeed, the pair could rise to the downtrend line. The bulls will have to push the price above this level to clear the path for a retest of the all-time high. Alternatively, a break below the uptrend line could start a deeper correction to $0.22.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks, and you should do your own research or contact your financial adviser before arriving at a decision. Cryptocurrencies are volatile assets, and prices can go down as well as up. Never invest more than you can afford to lose.

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