Helium (HNT) Price Analysis: Market Structure Remains Bearish Despite a 28% Bounce

Helium [HNT] had fallen 68.5% from the December resistance of $9.54 to retest the psychological $3 support last week. This amounted to a 68.5% price drop in just over two months.

Helium's [HNT] 68.5% slide from December’s $9.54 resistance saw it retest the psychological $3 support last week. This marked a 68.5% price drop in just over two months.

A lack of strong buying and the persistent downtrend since December pointed to the $3.3 zone as the next bearish price target.

HNT’s 28% bounce kept it within the downtrend

Helium's market structure on the daily chart was bearish. The recent lower high at $4.24 was highlighted in orange and remained the level to beat for a bullish shift.

The bearish momentum has shown signs of weakening over the past two weeks.

A bullish divergence on the daily chart was spotted in the first week of February, where the price made lower lows, but the RSI made higher lows.

Following this, HNT managed to bounce from the $3 round number support, notching a 28.5% gain in under a week.

This bounce was not backed by strong buying, as per the A/D indicator. The volume indicator's downtrend continued since mid-December, although it saw a bounce over the past ten days.

The 1-week liquidation heatmap showed a large liquidity cluster around $3.6. This level was tested on 10 February, after which the price quickly moved up to $4.19. The swift bounce was likely aided by a cascade of short liquidations.

Since then, the volatility has decreased, and HNT has been consolidating below the $4 level. The magnetic zone at $3.3 could attract the token’s price over the coming days.

Traders might anticipate a range formation between $3.3 and $4.2-$4.5. In the near term, the $3.6 zone will likely halt the bearish advance.