Helium Sees 24% Surge in Price in a Single Day, Potential for $5 HNT Price with Favorable Conditions
After hitting a recent low of $3.2, the price of Helium (HNT) has seen significant gains over the course of two consecutive days. Currently, Helium is trading at $4.1, marking a notable increase of 24.2% in the past 24 hours.
During this same period, there has been a substantial uptick in trading volume for HNT, spiking by 84.36% to reach $11.84 million, while the Open Interest (OI) has also seen a rise of 20.13%.
This bullish momentum is also reflected in the weekly charts, showing a rise of 20.04%. Prior to this surge, the altcoin was in a downtrend, falling by 24.26% over the past month.
Now, the question arises as to whether Helium can maintain this upward trend and potentially see further gains in the near future.
Can Helium Sustain its Upward Momentum?
According to analysis by CryptoCrypto, Helium is currently experiencing strong buying pressure as it gradually builds upward momentum.
One indicator of this buying pressure is the Relative Strength Index (RSI) for Helium, which has increased from 36 to 49. This uptrend in RSI represents a bullish crossover, indicating a dominance of buyers in the market.
As a result, it appears that sellers have lost momentum due to exhaustion, allowing buyers to take control of the market.
Furthermore, market sentiment among Helium holders has turned bullish, with a significant number of traders opening long positions. The Long/Short Ratio suggests that long positions are prevailing in the market, accounting for 55.89% of total futures accounts on 24-hour timeframes.
This indicates that a majority of traders anticipate the continuation of the uptrend and further price gains.
In addition, Helium’s Funding Rate OI Weighted has remained positive for the past three days. A rising OI paired with an increasing Funding Rate suggests that more traders are leveraging long positions in the market.
This scenario could potentially lead to a short squeeze if maintained over time, prompting short position holders to close their trades.
These market dynamics are reinforced by a positive funding rate aggregated by various exchanges, indicating overall bullish sentiment among investors and a persistence of long positions outpaying shorts.
With a strong upward movement underway and buyers regaining dominance, Helium shows promise for further gains on its price charts.
If current market conditions persist, Helium may target a price of $4.6, setting up the altcoin to potentially confront resistance at $5.0. However, in the event of a market correction, HNT could retract to $3.7.