Strong Surge in Helium Cryptocurrency Price; Expected to Approach $5 Level Soon
After dropping to $3.2 recently, the price of Helium’s digital currency, HNT, has seen significant increases for two consecutive days. Currently, Helium is being traded at $4.1, marking a notable 24.2% surge in the past day.
During the same period, the trading volume of HNT has experienced a substantial increase, jumping by 84.36% to $11.84 million, while the Open Interest (OI) has also risen by 20.13%.
On a weekly basis, the bullish trend continues with a 20.04% rise. Prior to these gains, the digital asset was on a downward trend, experiencing a 24.26% decline over the past 30 days.
With these recent price hikes, the main question now is whether Helium can sustain this upward momentum and achieve further growth.
Potential Sustainability of Helium’s Uptrend
As per analysis by CryptoCrypto, Helium is currently witnessing strong buying pressure, indicating a gradual build-up of upward momentum.
Initial observations point towards an increase in Helium’s RSI from 36 to 49, with the RSI exhibiting a bullish crossover, indicating buyer dominance in the market.
Consequently, sellers are losing steam post-exhaustion, while buyers are presently dictating the overall market sentiment.
Furthermore, an optimistic shift is observed among Helium holders, with a majority favoring long positions. The Long/Short Ratio reflects a dominance of long positions in the market, accounting for 55.89% of total futures accounts within 24-hour timeframes.
This data suggests that most traders are anticipating the continuation of the uptrend and further price appreciation.
Moreover, Helium’s Funding Rate OI Weighted has remained positive for three consecutive days. A simultaneous rise in OI and Funding Rate indicates an increasing number of traders adopting long positions.
Over a sustained period, this situation could trigger a short squeeze as short position holders move to close their trades.
These market dynamics are underpinned by a positive funding rate compiled across various exchanges, signaling a bullish sentiment among investors, with long positions prevailing over short ones.
Helium’s current price movement is indicative of a robust upward trajectory as buyers regain control. With a rising bullish sentiment, HNT appears well-positioned for further price appreciation.
If the current market conditions persist, Helium may aim to surpass $4.6, thereby reinforcing its position to challenge the $5.0 resistance level. However, in the event of a market retracement, HNT could retreat to $3.7.