Helium [HNT] has been on a volatile ride, shedding 68.5% of its value since reaching a high of $9.54 in December. The price recently tested the psychological support at $3, marking a significant decline over just two months. Despite a 28% recovery from this level, HNT remains in a broader downtrend, with the $3.3 zone emerging as a key bearish target.
Helium’s Market Structure Still Bearish
The daily chart structure for HNT remains bearish, with the recent lower high of $4.24 standing as a crucial resistance level. A breakout above this level would be required for a bullish shift in momentum. However, despite the recent bounce, buying pressure has been weak, as indicated by the Accumulation/Distribution (A/D) indicator, which has been in a steady decline since mid-December.
A notable bullish divergence occurred in early February, where the Relative Strength Index (RSI) posted higher lows even as the price recorded lower lows. This signaled weakening bearish momentum, leading to a short-term price surge from $3 to $4.19. However, this rally was largely driven by a cascade of short liquidations rather than organic demand.
Liquidity Cluster at $3.6 – A Key Resistance Zone
A closer look at the one-week liquidation heatmap highlights a significant liquidity cluster around the $3.6 mark. On February 10th, HNT tested this area before swiftly jumping to $4.19. Since then, volatility has reduced, and the price has consolidated below the $4 level.
With the $3.6 zone acting as an interim resistance, traders should be cautious of another potential rejection. If bearish momentum persists, Helium could revisit the $3.3 support level in the coming days. On the upside, a break above $4.24 could open the door for a move towards $4.5 and higher.
Also Read: Solana Price Struggles Below $200 Amid Kamino-Aave Feud – Key Levels to Watch
What’s Next for HNT?
Market participants should prepare for a potential range formation between $3.3 and $4.5 in the near term. While the bullish divergence suggests some relief, the lack of strong accumulation remains a concern. For a sustained recovery, HNT needs to reclaim $4.24 with high volume, otherwise, further downside remains in play.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
