HNT’s 10% Surge: A Prelude to a 35% Cataclysm?

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Key Takeaways

In the grand, ever-shifting theatre of digital lucre, the once-celebrated HNT—like a delicate butterfly caught in a tempest of speculation—has recorded enviable gains. Yet, lurking ominously ahead lies a supply zone, a veritable trapdoor where even the most exuberant rallies meet their demise. With mounting selling pressure emanating from the spot market and a weakening momentum, one might suspect that HNT’s ascent is on the cusp of a precipitous reversal. 😏

Over the past day, HNT soared by a resplendent 10%, leading the crypto parade in what appeared to be a meticulously choreographed masquerade. However, the exodus from exchanges and the subtle yet insidious undercurrents hint that this exuberance may be nothing more than a brief flirtation with fortune. According to the soothsayers at AMBCrypto, while HNT dons a bullish façade, beneath its veneer lie telltale signs of a crumbling market structure and a silent hemorrhage of liquidity. Watch closely—the next act might be less than jubilant. 🎭

Indeed, AMBCrypto’s analysis suggests that, although HNT’s surface gleams with bullish allure, the subterranean signs of a weakening edifice and liquidity drainage foreshadow a likely pullback. Here’s what to observe in this unfolding drama. 🕵️‍♂️

HNT faces roadblock — Here’s what it means

A meticulous perusal of the 1-day chart reveals that HNT is hurtling toward a notorious supply zone nestled between $3.90 and $4.24—a realm much like a stage set for tragedy. Historically, this zone has been the cradle of significant sell-offs. On the 23rd of February, a tentative test of this treacherous range precipitated a staggering 42% drop. A subsequent test on the 13th of April led to a 17% nosedive over a mere three-day period, and the latest retest on the 28th of May witnessed a precipitous 46% decline. One might say that HNT’s journey into this zone is akin to a fateful dance with destiny. 😱

This recurring motif suggests that a foray into this supply zone might trigger another dramatic drop—potentially oscillating between 17% and 46%, with the average descent hovering around a disquieting 35%. In the grand theatre of crypto, it seems HNT is once again scripting its own tragic narrative. 🎭

Investors are reducing exposure

It appears that a cadre of discerning investors—perhaps foreseeing the inevitable reversal—have begun judiciously trimming their positions in a bid to sidestep the forthcoming calamity. In the past four days, the spot market has seen a collective offloading of approximately $2.17 million worth of HNT, as chronicled by CoinGlass data.

This persistent pattern of green histograms reflects sustained outflows—a refrain echoed in the derivatives market as well. Meanwhile, Open Interest has climbed by 4% to $7.34 million, a figure that betrays an increase in trading activity. Yet, the Long-to-Short ratio, favoring sellers, implies that most of the $364,000 in added liquidity over the past 24 hours has emanated from short positions. And in a twist of fate, the trading volume has declined by 10% even as the price rose—a classic harbinger of a rally devoid of genuine strength and a likely prelude to a breakdown. 💸

Indicators signal a pullback

A confluence of technical indicators further buttresses the bearish case. The Money Flow Index (MFI)—that faithful chronicler of liquidity’s comings and goings—has audaciously breached overbought territory, soaring above the 80 mark. This flagrant excess signals that HNT is currently overvalued and teetering on the precipice of a correction. 😒

Moreover, the Accumulation/Distribution (A/D) indicator remains ensnared in negative territory—a subtle nod to a phase where selling outweighs buying. This discount phase hints at sustained downward pressure, and if the A/D indicator continues its gloomy sojourn, HNT may well face a significant drop in the days to come. In the grand chessboard of crypto, every move is both a calculated risk and a whimsical gamble. ⚖️

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2025-07-20 10:36