The HIVE price saw a sudden uplift after a perfect retrace into a significant technical support level, bringing the ATH’s back into focus.
Monday saw a remarkable return to form for Hive(HIVE). The decentralized data-sharing network for content creators surged 30% as the bulls tried to pare the 40% loss from Friday’s all-time high. The sharp rebound has lifted Hive’s market cap back above $1 billion and is close to reclaiming its place amongst the 100 most -valuable cryptocurrencies. The recent strength is undoubtedly due to fears over the Omicron covid variant subsiding. Confidence has returned to the crypto market, helping Bitcoin rally almost $4,000 from Friday’s low and triggering broad gains in altcoins.
As we predicted, the weakness at the end of last week ran into buying as the price approached the $1.80 support level:
“A logical support level is $1.8000, which offered resistance ahead of the impulse rally. In my opinion, buyers should emerge if the price heads towards the $1.8000 level. On that basis, a prudent trading strategy would be to let the price work off the overbought condition and accumulate scale-down towards support.“
However, the rally that followed is extreme, leaving HIVE vulnerable to profit-taking.
What To Expect Next
The 4-hour chart shows the HIVE price is in a strong uptrend. As a result, the relative Strength Index is close to overbought. However, a push above $3.00 could encourage momentum buying, despite the lofty RSI.
In theory, as long as HIVE remains above $1.80, the prospects are good. But I expect volatility to remain elevated in the coming sessions. Therefore, the token may take another look below $2.00 before moving higher.
On that basis, I am on the fence at this level, awaiting a better entry point on a pullback.
HIVE Price Chart (4-hour)
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