Helium (HNT) Price Analysis: Bulls Aim for $10 Despite Decline in Liquidity Flow

In the last 24 hours, HNT has posted gains of 12.50%, despite a 16.60% drop over the past week. In fact, its monthly performance stood at 20.14%

output: Despite a 16.60% drop over the past week, HNT has posted gains of 12.50% in the last 24 hours. Its monthly performance stood at 20.14% at press time, with recent developments hinting at strong potential for sustained growth on the charts.

Hence, AMBCrypto analyzed key factors influencing HNT’s current uptrend and explored possible scenarios for its future price action.

Support acts as a lever for HNT’s push to $10

Recently bouncing off the lower support level of an ascending channel, HNT’s price movement fits within a clear path outlined by this price pattern. Ascending channels are known for indicating potential upward movement within defined support and resistance zones.

If we take a closer look at HNT’s price action on the 12-hour chart, we can see how this played out. The asset bounced off a support level around $6.6 and faced another critical support at $6.564. This dual support provided HNT with additional momentum, pushing its price higher.

Now, if this momentum continues to hold strong, HNT could potentially hit $10.15. However, it must first overcome a key resistance at $7.71, as highlighted by the chart below.

Source: TradingView

AMBCrypto’s analysis of technical indicators also revealed a predominantly bullish sentiment, although some uncertainties remained.

HNT remains bullish, despite decline in liquidity flow

Both the Bollinger Bands and the Money Flow Index (MFI) hinted at the potential for further upward movement, while technical indicators also highlighted a predominantly bullish sentiment for HNT.

Bollinger Bands are used to measure market volatility and identify overbought or oversold conditions. They consist of three lines – A middle band (SMA) and upper/lower bands positioned two standard deviations from the SMA.

These bands can help identify potential price breakouts or indicate when an asset is due for a price correction. At press time, HNT had rebounded from the lower Bollinger Band, indicating a bullish trend.

Source: TradingView

On the other hand, the Money Flow Index gauges market sentiment by analyzing price and volume to measure buying or selling pressure. A reading above 50 indicates a bullish zone, while a value below 50 suggests a bearish trend.

While HNT remained in the Money Flow Index’s bullish zone, the indicator showed a decline from the previous day. This downturn could be linked to a decrease in buying activity, perhaps due to traders taking profits from HNT’s recent price surge.

Traders maintain optimism for HNT’s uptrend

Open Interest, which tracks the number of unsettled derivative contracts in the Futures market, reached $7.45 million in the last 24 hours, indicating growing participation in HNT’s market.

Open Interest serves as an indicator of the total amount of open contracts in the Futures market at any given time. A spike in Open Interest, like the one observed for HNT, suggests that more contracts are being opened, indicating increased participation in the market.

At the same time, the Funding Rate, with a reading of 0.0152% in the positive zone, pointed towards a market that was skewed towards long positions.

The Funding Rate reflects which side of the market (long or short) pays periodic fees to balance the difference between spot and derivative markets A positive Funding Rate, as seen here, indicates that buyers (longs) held more open contracts.

Overall, HNT had strong support from market participants, and the asset could continue its uptrend from its press time level.