Examining the Likelihood of Helium’s [HNT] Price Dropping Below 2024 Low

Helium [HNT] has experienced a downward trend in the past month, with a significant 20.11% decrease in value. The overall market sentiment surrounding HNT has also declined, coinciding with an increase in selling pressure across the crypto market.

Despite the prevailing selling pressure, there are signs of potential recovery for HNT as a shift in market dynamics emerges. In derivatives trading, some groups are beginning to open long positions cautiously, while bullish activity in the spot market may be gaining traction once again.

Spike in Selling Volume

In the derivatives market, selling volume has surpassed buying volume recently, illustrated by the Taker Buy-Sell ratio dropping to 0.963. When this ratio falls below 1, it indicates increased selling pressure during that specific period, usually within a 24-hour timeframe. Conversely, a ratio above 1 signifies stronger buying activity in the derivatives market.

Despite the surge in selling volume in recent weeks, the number of outstanding derivative contracts has decreased by 19.80% to $4.96 million, as indicated by Open Interest. A drop in Open Interest, coupled with reduced volume, typically hints at a bearish market outlook.

Meanwhile, in the spot market, sentiment appears somewhat divergent, with negative Exchange Netflows recorded over the past two days. This suggests that traders are transferring their holdings to private wallets for long-term investment. Positive readings in this metric usually signal selling activity.

A total of approximately $250,000 worth of HNT has been withdrawn from exchanges in the previous two days, with $119,480 moved out on the first day and $130,520 in the last 24 hours.

Despite recent market sentiment offering a glimmer of hope, a broader perspective using weekly data indicates that sellers continue to dominate the HNT market. This signals caution among traders participating in HNT.

A Break Below $2.85 Depends on Buyers

On the price charts, HNT faces the risk of a significant decline as it adheres to a descending trendline, gradually pushing the asset downwards. Should selling pressure intensify at current levels, HNT could drop to its $2.85 support level—its lowest point in 2024, established on June 18—and potentially further depending on market dynamics.

However, the extent of the decline will rely on the support level at $3.315. If this level holds, it could act as a barrier preventing further downside movements. Notably, with the altcoin’s funding rate turning positive at 0.0176% presently, there are indications of lingering buying interest.