Helium (HNT) has experienced a turbulent market cycle, marked by significant price swings. After a strong finish to 2023, HNT reached a cycle high of $11.06 in February 2024. However, its momentum faltered, leading to a prolonged downtrend. By February 2025, HNT had plunged 70%, bottoming at $2.98 before finding support at the crucial $3 level.
HNT Bounces Off Key Support
The recent price action suggests that the $3 horizontal support level has played a pivotal role in preventing further declines. After testing this level, HNT staged a notable rebound, surging nearly 40% to challenge the $5.60-$5.80 resistance range. This bounce has sparked speculation about whether the rally can be sustained or if a deeper correction is on the horizon.
From a technical standpoint, HNT’s price action remains mixed. The weekly chart shows a descending resistance trendline that has persisted for over three years. While the recent bounce is encouraging, the inability to break this trendline suggests underlying weakness. Moreover, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators remain in bearish territory, reinforcing the long-term bearish outlook.
Short-Term Recovery, Long-Term Uncertainty
Despite the broader downtrend, the daily chart provides a more optimistic perspective. HNT has broken out from a descending parallel channel, a bullish signal often associated with trend reversals. Additionally, the RSI and MACD have flashed bullish divergences, further supporting the possibility of a short-term rally.
However, historical price patterns and wave analysis indicate that the current bounce could be part of an A-B-C corrective structure. If this holds true, HNT may soon resume its downward trajectory after reaching the $5.63-$6.44 Fibonacci retracement zone.
Also Read: Helium (HNT) Breaks Out, Analyst Predicts 648% Surge as Decentralized Network Gains Traction
Will HNT Sustain Its Momentum?
While Helium’s price has rebounded strongly from its $3 support, the long-term outlook remains uncertain. The rally could extend toward key resistance levels, but failure to break above them may trigger another sell-off. If bearish pressures persist, HNT could slip to new lows, reaffirming the downtrend. Traders should monitor resistance levels closely before confirming a trend reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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