thecoinrepublic.com
Amid the recovery phase in the broader market, several Altcoins have started taking a rebound from the lows. Some altcoins had initiated a recovery the previous week after the panic selling. Some cryptocurrencies stabilized at the lows and are now attempting a recovery.
Helium price suffered rejection after attaining a fresh high of $10 in the last week of February. After that, the $HNT token price headed downward and entered a correction phase. The selling pressure dominated, and the price suffered towards the $3 level, losing all the annual gains.
The recent sessions have reported a bounce back from the lows, indicating a strong comeback by the bulls. A notable 30% rise in the open interest contracts supported the $HNT price surge, suggesting a long buildup.
Transaction Volume and the OI Data are on the Rise
Helium has to go a long way. It’s worth noting that, like many other altcoins, $HNT traded much lower than its all-time high (ATH).
When writing, the $HNT token price is nearly 92% down from its peak during the 2021 bull run. However, The recent surge in $HNT price has re-established the investors’ confidence.
The short-term surge seemed to be driven mainly by a notable surge in open interest (OI) contracts. As per the data derived from an on-chain analytics website, the open interest contracts have surged by over 30% in the last three sessions.
The OI contracts have surged from $2.9 Million to $4.13 Million. It suggested a long buildup.
Additionally, there has been a similar development in the transaction volume. The transaction volume has surged over 70% in a day to $29.01 Million. The volume-to-market capitalization was 4.15%, suggesting low volatility.
Can $HNT Mark a Bullish Reversal?
Though the price has recovered in recent sessions, the long-term trend outlook remains on the bearish side below the 200-day Exponential moving average. The price has surpassed the 20-day and 50-day EMAs, indicating a positive short-term trend outlook.
On the higher side, the $5 level may act as a crucial supply level. On the other hand, on the lower side, the $3 level may act as a strong demand zone as the price has rebounded.
A breakout above $5 may validate a bullish reversal, and the $HNT price may show gains. Suppose the bears take over again, and the price looms below the $3 level, it may indicate a bearish continuation.
The technical indicators imply a bullish continuation in the short term. At the time of writing, a bullish crossover of the RSI and 14 day SMA line was noted on the charts, indicating the trend continuation in the short term.
What’s Next For Helium?
The Helium ($HNT) price has surged recently and boosted investors’ confidence. The short-term rise was driven by a 30% increase in open interest contracts, suggesting a long buildup. The transaction volume also showed a 70% rise, indicating low volatility.
While the price hovers above the 20-day and 50-day EMAs, it remains below the 200-day EMA, indicating a bearish long-term trend.
Key levels to watch are $5 (resistance) and $3 (support). A breakout above $5 could signal a bullish reversal, while a drop below $3 may indicate continued bearishness. Technical indicators suggest a short-term bullish continuation.