Helium is a blockchain-based network that helps in connecting Internet of Things devices. It was founded in 2013, and helium technology enables communication between the devices while system data is across the network nodes. The nodes that connect in the network are called hotspots in the Helium system.
Recently, the helium price broke out below the consolidation zone. HNT price wrecked the support of $1.76, causing a decline of approximately 26% since the start of May.
May has not been an excellent month for HNT price as since the start, HNT price has been facing a severe downtrend. Helium consolidated in the range of $1.76 and $1.93 more than a month, which gave rise to the intense downfall.
Currently, the HNT price is again stuck in a narrow consolidation zone. The current consolidation zone range is from $1.30 to $1.47. If the HNT price can break and close above the $1.47 level, there is a clean move for the price to retest the consolidation and move towards the April highs of the $1.93 level.
On the other hand, if the HNT price can break below the current support, it might head towards the all-low of $1.1528.
Helium Abandons Its Own Layer-1 Blockchain
Helium has recently left its layer-1 blockchain and shifted Solana(sol) mainnet in April. This move is one of the most significant transitions in the decentralized network history.
Over 1 Million new NFTs have been created in the migration process as each physical hotspot node operation on Helium Network will have a corresponding NFT on Solana. The arrival of Helium on Solana has helped Solana increase its user base.
HNT Price Trades Near All-Time Low
RSI trades at 45.35, indicating HNT price is in neutral territory facing the same pressure from bulls and bears. Chaikin Money Flow score is still below the 0 mark and trades at -0.04, suggesting that the market still has a weakness and traders should wait for proper confirmation before looking for any bids.
Traders should also keep in mind that the price has arrived at the strong weekly support from where HNT price has bounced off previously.
HNT price rebounded after reaching the lower band of Bollinger and is headed toward the upper band of Bollinger. The long/short ratio is 0.95, with 48.82% longs and 51.18% shorts, indicating there are still more positions of shorts than longs in the last 24 hours.
Conclusion
Market structure and price action for Helium is currently in an indecisive phase. The technical analysis paints the same picture. If the bulls are able to break the resistance level of $1.47 level, HNT price will possibly recover from the losses.
Technical levels
Major support: $1.30 and $1.20
Major resistance: $1.47 and $1.76
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/21/helium-price-prediction-may-hasnt-been-good-for-hnt-price/