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Will the Helium (HNT) token’s breakout from the falling channel rally surpass key Fibonacci levels, leading to a crossover above $10?
Despite a surge in supply pressure as Bitcoin approaches the $95,000 support level, the altcoin segment continues to see strong performers. Helium is one of the top-performing cryptocurrencies, with its native token, HNT, increasing by 33.55% last week to reach a market price of $8.52.
The HNT market capitalization is on the verge of surpassing $1.5 billion. Will the recovery rally in the HNT price push it beyond the psychological $10 mark in such a volatile market? Let’s explore further.
HNT Price Run Surpass $8
On the daily chart, Helium’s price action shows three consecutive bullish candles, with the rally beginning on Saturday, November 30. The price action registered a breakout from a falling channel pattern.
Further, the breakout rally extended to a 24-hour high of $9.377. HNT price is currently trading at $8.484, reflecting an intraday gain of 5.01%.
With a triple white soldier pattern (three consecutive bullish candles), Helium is challenging the 78.60% Fibonacci level. A bullish close above this level within 24 hours would confirm a new breakout rally.
This resistance level had caused a failure in the bullish trend in September, triggering the falling channel pattern. Therefore, a breakout above this crucial resistance level could lead to a new 52-week high, potentially surpassing $11.16.
The MACD and signal lines are in positive alignment, with an increase in positive histograms supporting the bullish trend. Additionally, the 50-day and 100-day EMAs are showing a bullish crossover, signaling the potential for an extended rally.
Increased Helium Data Credits Burning Fuels the HNT Bull Run
In a recent X post, James Fayal, the founder of Zest, shared statistics supporting the bullish rally in HNT tokens. James posted data on Helium’s network activity, showing a significant rise in Helium data credits burned for network usage.
The statistics revealed a massive spike of over 10,000 Helium data credits burned for two consecutive days, signaling rising network usage and boosting market demand for HNT tokens. Furthermore, this has a deflationary impact on the circulating supply and increases positive sentiment due to broader adoption.
In case anyone is wondering why @helium $HNT and $MOBILE are running today. It's just the start. #DePIN pic.twitter.com/22boe4zXPm
— James.Fayal (@JMFayal) December 1, 2024
Helium Price Targets
The trend-based Fibonacci levels suggest an immediate price target near the psychological $10 mark. A bull run beyond $10 could target the 1.272 Fibonacci level at $11.96.
On the other hand, if the rally fails to close above the 78.60% Fibonacci level, the price may retest the 61.80% Fibonacci level, currently at $7.37, reflecting a downside risk of nearly 13%.