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.