Helium (HNT) Price Prediction 2022: Will the Bullish Momentum Prevail?

Helium [HNT], priced at $8.16 at press time, recorded a 0.2% rise in the last 24 hours due to strong data revenue and higher token burning.

Helium's (CRYPTO: HNT) price showcased a 0.2% gain in the last 24 hours, trading at $8.16 at press time. This positive movement was driven by strong data revenue and higher token burning due to the increasing usage of mobile and IoT services on the Helium network.

A closer look at the network's performance on the 7th of September revealed its highest daily data revenue, with $4,070.14 coming from mobile and $97.05 coming from IoT services. This resulted in more HNT being burned, as data credits (DC) are created through burning HNT. In the last 24 hours, 9.6 million DCs were burned, indicating a decrease in the number of HNTs in circulation.

The founder, Amir Haleem, also highlighted this trend in an X (formerly Twitter) post, pointing out that token burns were increasing on a daily basis due to the growing adoption of the network. This aligns with the increasing network utilization that leads to higher burn rates and, therefore, the deflationary characteristics of the HNT token.

Furthermore, 7.68% of the total HNT supply was staked at the moment, which also limited the supply in the market.

A glance at the technical indicators suggested short-term strength for Helium. AMBCrypto's analysis showed that the Relative Strength Index (RSI) was at 61.93 at press time, indicating that HNT was still below the overbought level of 70 and, therefore, had the potential to rise further.

The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover, with the MACD line standing at 0.005 above the signal line, suggesting that the market remained in the upward trend.

However, the price was getting close to the upper Bollinger Band, which was at $8.492. This indicated short-term resistance, as most assets that trade near the upper Bollinger Band tend to experience increasing volatility or consolidation. If the price couldn't break through this level, there was a high possibility of pullbacks.

Data from the blockchain supported this bullish thesis for Helium. The network numbered 357,267 active hotspots at press time, which was important as it showed the growth in the physical infrastructure provided for the decentralized wireless service.

Additionally, the number of Helium mobile subscribers as of the 9th of September was 113,250, which indicated the network's real-life usage. The network generated $4,764.25 of daily revenue on this date, mainly due to mobile and IoT usage, which remained a source of token burns and decreasing supply.

The overall market perception of Helium was still bullish at press time. This was supported by the steady increase in network usage and a rising number of tokens being burned, which added to the deflationary pressure of HNT. However, investors should be aware of other market conditions, as even though Helium's fundamentals were great, broader market conditions may affect the price of HNT even as the network grows.

From the above analysis, we can see that Helium's fundamentals, such as increasing data revenue, token burns, and network adoption in the short term, strongly support the bullish trend. Making HNT a deflationary model means that the more the network is used, the fewer HNTs are in circulation, and thus the price goes up.

The fundamental analysis has also supported the positive trend, with both the RSI and MACD also indicating positive on the technical analysis. However, traders should monitor the resistance levels at the $8378 Bollinger Band and possible changes in the overall market mood. Even though the current trend appears to be favorable, any major challenges or movements in the market may lead to fluctuations in the short term.