Helium price could enter beast mode, technicals suggest

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As a seasoned researcher with a knack for deciphering market trends, I find myself intrigued by the remarkable three-day surge of Helium (HNT). Having closely followed the crypto space since its inception, I can attest that this kind of sustained rally is not an everyday occurrence.

Helium, the biggest player in Decentralized Public Infrastructure, rose for three consecutive days.

On Sunday, December 15th, Helium (HNT) surged to a significant resistance point at $9.520, fueling the ongoing rally. This surge represents an impressive 228% increase from its lows in August, elevating its market capitalization to approximately $1.6 billion.

The surge in Helium’s price occurred as it was observed that the data from the futures market indicated a robust upward trend in open interest. Specifically, on Sunday, the open interest surpassed $11 million, marking an increase from its previous low of $9.35 million last week. Interestingly, most of this increased activity was concentrated on Bitget and OKX platforms.

Helium open interest

The measurement known as open interest focuses on the quantity of pending buy and sell orders, particularly in the futures market. This figure tends to increase when a specific asset experiences heightened interest or demand.

As an analyst, I’ve observed a notable trend: The rate at which Helium Network Tokens (HNT) are being incinerated has been significantly increasing over the past few months. A recent analysis by Messari revealed that more than a quarter of a million HNT were burned in November alone. These tokens are typically destroyed to gain access to data credits for network usage.

As an analyst, I’m observing a speedy escalation in the DePin demand. Notably, key high-performance networks like Hivemapper ($HONEY), Geodnet ($GEOD), and Helium ($HNT) are experiencing consistent growth and are approaching record highs for the month of December. These platforms burn their respective tokens (HONEY, GEOD, HNT) for map data usage, location correction data usage, and network operation, respectively.

— Nick Garcia (@NickDGarcia) December 13, 2024

After community members cast their votes in favor of HIP 139, the price of Helium started to climb at a faster pace. This proposal aimed to gradually stop providing rewards for the Citizen Broadband Radio Service within the Helium Network.

Subsequently, Nova Labs will aid the CBRS shift by updating their devices with standard software. This change impacts approximately 4,000 CBRS owners.

Helium price analysis

Today’s graph indicates that Helium Network Token (HNT) has performed favorably, increasing from $5.22 earlier this month to $9.52 currently. This significant price level was previously unsuccessful in being surpassed on December 2nd and 7th. Additionally, it slightly exceeds the critical support at $8.667, marking its highest point since September.

Helium is currently sitting above both its 50-day and 25-day moving averages, and it’s also slightly higher than the median line drawn by the Andrew’s Pitchfork indicator.

Consequently, if we observe a distinct rise surpassing the resistance level at $9.52, it would contradict the triple-top pattern, suggesting further growth may be on the horizon.

Should this occur, a significant point to observe would be a level of $11, marking the year-to-date high. This figure represents an approximately 18% increase from the current position. If we surpass this level, it might lead to a potential rise towards $20.

In the year 2013, Helium was established as a joint venture by its CEO Amir Haleem, the innovator behind Napster (Shawn Fanning), and its Chief Technology Officer (Sean Carey).

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2024-12-15 16:56