Helium (HNT) has been struggling over the past month, registering a significant 20.11% decline. Market sentiment has also taken a hit, with growing selling pressure contributing to the asset’s downturn. However, amid the ongoing bearish phase, a few indicators suggest a potential shift in momentum.
Selling Volume Surges in Derivatives Market
In the derivatives market, selling volume continues to dominate, as reflected in the Taker Buy-Sell ratio dropping to 0.963. A ratio below 1 typically signals increased selling pressure, confirming bearish sentiment in the last 24 hours. Furthermore, Open Interest has seen a 19.80% decline, now standing at $4.96 million. A falling Open Interest alongside declining volume often points to a weak market structure, indicating that traders are hesitant to take new positions.
Exchange Netflows Indicate Accumulation
While the derivatives market remains bearish, activity in the spot market presents a different picture. Over the past two days, Helium’s Exchange Netflows have turned negative, suggesting that investors are withdrawing HNT from exchanges to private wallets for long-term holding. Approximately $250,000 worth of HNT has been moved off exchanges, with $119,480 withdrawn the previous day and an additional $130,520 in the last 24 hours.
This shift suggests that some traders anticipate a price recovery and are securing their holdings rather than selling at current levels. However, despite this accumulation, weekly data reveals that sellers are still in control, reinforcing the cautious sentiment in the market.
HNT’s Price Risks Further Decline
On the price charts, HNT continues to trend downward, facing the risk of dropping below its key support level. A further decline hinges on whether HNT breaks below $3.315. If this level fails to hold, the asset could test its 2024 low of $2.85, recorded on June 18. However, if buyers step in at this level, it could provide a much-needed cushion against further downside.
Interestingly, HNT’s funding rate has turned slightly positive at 0.0176%, signaling that some market participants are still optimistic. Whether this buying pressure is enough to counteract the overall bearish trend remains to be seen.
Also Read: Helium (HNT) Price Outlook: Can the Recent Rally Overcome Bearish Pressure?
Helium’s market outlook remains mixed, with bearish pressure prevailing but some signs of potential recovery emerging. While long-term holders are showing confidence, the asset’s short-term trajectory depends on whether key support levels hold. Traders should remain cautious and closely monitor market movements before making any significant decisions.
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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