Key Takeaways
The Helium (HNT) price began an upward movement in July but hit a roadblock in September and has fallen since.
On Oct. 9, Helium dropped some positive news when it announced a partnership with Ameriband to add over 100,000 data-only hotspots to the Helium Network in the next few months.
These will help deliver faster and more reliable coverage to users in key spaces.
Let’s see if this can provide a much-needed spark that takes the HNT price back toward its range high.
The weekly HNT chart shows that the price increased rapidly in October 2023. The upward movement continued until February 2024, with a high of $11.06. The high seemingly caused a breakout from the $8 horizontal resistance area, which had existed since April 2022.
However, HNT failed to sustain its upward movement and fell shortly afterward. So, what looked like a breakout was only a deviation (black circle).
After another decline and upward movement, the $8 resistance area rejected HNT again in September (black icon). This confirmed the resistance area’s validity and triggered another short-term decline.
The closest support area is $5, created by a diagonal and horizontal support level.
The price of HNT has not retested this level since it first broke out above it in August.
Technical indicator readings in the weekly time frame are neutral. The Relative Strength Index (RSI) is above 50 but falling, while the Moving Average Convergence/Divergence (MACD) is above 0 but falling.
So, the weekly time frame price action and indicator readings give an inconclusive trend.
The daily time frame chart gives a more positive HNT reading. This is because of the wave count and price action.
Since July, the HNT price has completed a five-wave upward movement (white), leading to a breakout from a descending resistance trend line.
This signifies that the ongoing increase is impulsive. However, in the short term, the HNT price completes an A-B-C corrective structure (black).
If the count is accurate, the short-term HNT correction could end near $5.07 at the 0.618 Fibonacci retracement support level.
The level also coincides with the previously outlined long-term support, increasing its significance.
After the low, the Helium price can begin another upward movement that takes it toward the $8 horizontal resistance area.
Helium has staged an impressive recovery since July. However, a short-term correction started in September and is likely still ongoing.
The HNT price may continue falling toward $5.05 before eventually resuming its upward trend.