Helium [HNT] exhibited signs of an ongoing bearish trajectory as it decreased by 6% in the span of 24 hours, indicating a strong grip of selling pressure on its value.
As of the current moment, HNT was being traded at $6.52, marking its lowest price for the month thus far. This cryptocurrency was undergoing a corrective phase subsequent to reaching a multi-month peak exceeding $8 earlier in the month.
The recent surge in HNT’s value coincided with the expansion of the decentralized physical infrastructure network (DePIN) sector, which has witnessed a substantial market capitalization surge exceeding $17 billion according to Coingecko.
Is HNT Likely to Fall Below $6?
Investors who engaged in the Helium price rally are capitalizing on their gains, and should this pattern persist, there is a heightened risk of further devaluation for HNT.
An analysis of the one-day chart reveals consistent descending trends in the price of HNT, with occasional upticks followed by corrective phases. This bearish pattern suggests that each ascent in price has been counteracted by profit-taking among traders.
The continual selling pressure is also reflected in the movement of the Relative Strength Index (RSI), which has recorded recurrent lows. The RSI line has plunged further beneath the signal line, indicating a robust bearish momentum.
With the RSI at 41, HNT has yet to reach an oversold condition. However, following the breach of support at the 0.618 Fibonacci level ($6.70), the prospects for HNT slipping below $6 have intensified. Historically, this threshold has served as a solid support barrier, and if it falters, a descent towards $5.47 seems plausible.
The Awesome Oscillator (AO) bolsters the prevailing bearish viewpoint. For the first time since mid-July, the AO has dipped below the zero line, signifying an amplification of selling activity and a potential further decline in HNT’s value.
Unfavorable On-Chain Data Trends
Indicators from the Helium network also present bearish indications. Data sourced from Artemis delineates a decrease in daily active addresses to 15,700, marking the lowest figure for the month.
Concurrently, trading volumes have surged, with a notable $5 million increment to $17 million recorded on the 17th of September. This uptick in volumes reflects heightened short-term trading activities. Nevertheless, the absence of a corresponding increase in price alongside the augmented volumes serves to bolster the argument of intense selling behaviors, thereby further clouding the long-term price outlook.
Coinglass data underscores a record low long/short ratio of 0.74, indicating a prevailing sentiment among traders that anticipates a further decline in price, thus prompting an increase in short positions on HNT.