Helium (HNT) displays bullish momentum, but there’s a catch

Helium (HNT) is among the altcoins showcasing resilience as bears dominate the crypto market, gaining nearly 40% on its weekly timeframe.

Moreover, metrics suggest continued uptrends for the altcoin. Coinglass data shows HNT’s open interest jumped 19% to the multi-month high of $6.85 million. Improved market participation confirms magnified activity by future traders.

Nonetheless, the uptick in negative funding rates indicates that most traders are executing shorts, expecting declines as HNT’s uptrend explores potential peaks.

Helium bulls demonstrate resilience

HNT rallied over the last seven days as bulls dominated. The altcoin gained over 5% in that timeframe to hover at $6.70 during this publication.

Meanwhile, the uptick saw a near-term bullish formation on the 4-hour chart, with the 50-d SMA crossing above the 100-d SMA. That indicated the chances of sustained upswings for Helium prices.

Further, the Chaikin Money Flow jumped to 0.43% on the 4-hour chart, indicating buying activity behind Helium’s trend.

That shows demand outweighing supply, supporting the alt’s upward stance.

Amplified buyer momentum could see HNT overcoming the closest resistance at $8 to explore the value region at $10.

HNT’s mixed sentiments

Helium’s Open interest highlighted bullishness after hitting the highest mark since May 2024. That indicated improved participation, with Futures traders adding positions.

Surged open interest amid bullish prices confirms a bullish stance. Nevertheless, negative funding rates suggested that traders are executing shorts.

Source – Coinalyze

Short players predict retreats after the recent rally, painting a near-term bullish picture.

Nevertheless, continued buying momentum from the spot market could lead to a short squeeze, forcing short participants to close positions. That will propel HNT prices higher.

HNT current price outlook

The altcoin traded at $6.70, with bears emerging after last week’s upsurges. The solid recovery saw it surpassing the resistance at $7 before sliding.

HNT 7D Chart on Coinmarketcap

Helium boasts a reliable support floor at the $6.33 mark. Sustenance beyond this mark would welcome more uptrends.

Meanwhile, massive demand is necessary to overcome the resistance at $8. Only sustained demand in futures trading could trigger such an upswing.

Failure to maintain the $6.33 mark could plunge the altcoin to $5, invalidating the predicted rise.

Helium’s place in the market

Helium is a decentralized platform for Internet of Things (IoT) devices. The blockchain enables energy-friendly wireless devices to connect and transfer data across its nodes.

Meanwhile, Helium has attained massive recognition due to its involvement with DePIN. Proponents believe HNT is to decentralized physical infrastructure (DePIN) what BTC is to the crypto market.

Despite the near-term mixed bias, HNT’s future appears bright as the DePIN technology gains traction.

In summary, Helium exhibits a bullish stance following last week’s surges. Positive technical signals and improved investor sentiment support HNT’s optimistic outlook.

However, the altcoin seems poised for near-term declines before extending the upward journey.

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