- HEMI slips over 6% in 24 hours, trading near $0.032 with selling pressure intensifying
- Short entry setup gains traction as price forms a clear downtrend on the 2H chart
- Despite 77% weekly gains, HEMI’s post-spike correction signals waning bullish strength
HEMI (Hemi Network) is showing signs of exhaustion after a strong weekly performance, with current price action and volume patterns indicating a potential bearish breakdown.
Price Action Turns Bearish After a Strong Start
HEMI, the Bitcoin Layer-2 token, has seen its bullish momentum weaken sharply following a parabolic run earlier this month. As of press HEMI trades at $0.032176, down 6.02% in the past 24 hours, per data from CoinGecko. The asset hit a 24-hour high of $0.035727 but has since fallen to test key support at $0.032000 now acting as a crucial level for buyers to defend.
Alpha Crypto Signal highlighted this weakness on X (formerly Twitter), signaling a short trade opportunity with an entry near $0.032178, stop-loss at $0.036177, and take-profit at $0.025981.This setup gives traders a solid risk-to-reward balance of about 1:2, showing they’re making a calculated bet on the price moving down.
Volume, Market Cap Show Classic Post-Pump Distribution
The recent price correction follows a steep rally that saw HEMI surge over 200% between August 31 and September 3. The token’s market cap jumped from $12M to above $45M in just days before retracing to around $32M, according to on-chain data. This pattern suggests a typical distribution phase, where early investors began taking profits.
While the 24-hour trading volume remains high at $3M, down from peaks of 1.79B HEMI traded, the declining price indicates distribution rather than accumulation. The tapering volume and fading buying interest reinforce bearish sentiment across short timeframes.
Despite the recent dip, HEMI is still up 77.21% over the last 7 days, pointing to strong initial demand. However, with momentum cooling and technical indicators flashing red, caution is advised.
Partnership News Offers Long-Term Hope
On the fundamentals front, Hemi Network recently announced a strategic partnership with Owlto Finance, a cross-rollup bridge for Layer-2 networks. The collaboration is expected to improve Hemi’s interoperability and expand its transaction capabilities within the Bitcoin DeFi space.
While this partnership adds weight to HEMI’s long-term potential, traders are keeping their eyes on the charts for now. After a heated rally, the market seems to be cooling off and settling into a consolidation phase.
