Helium Surges Over 100% Since August Low—What’s Driving HNT’s Rise?

Key Takeaways

• Helium’s HNT surged 115% since the August 5 market low.
• Successful trials with U.S. carriers drove significant demand for HNT.
• HNT could reach $9.20, with current support around $6.20.

The crypto market’s recent recovery has been a welcome break for investors, with most assets enjoying a significant boost since hitting rock bottom in early August.

However, one token has left the rest in its dust: Helium (HNT), which has surged an impressive 115% in just a matter of weeks.

As we delve into the factors driving this remarkable turnaround, it’s clear that a perfect storm of bullish sentiment and fundamental developments has come together to propel HNT to new heights.

The question on everyone’s mind now is: can this momentum be sustained, and what does the future hold for Helium’s price?

What Drove the Demand for HNT?

Helium’s HNT token has surged by 50% in the past week. This sharp increase can be attributed to several key factors.

The recent announcement of successful trials with two prominent US carriers has reignited interest in Helium’s decentralized network infrastructure. 

As part of the Carrier Offload Beta, these trials showcased the network’s reliability and capacity to handle substantial data volumes, attracting nearly 60,000 new users  and offloading five terabytes of data through just 89 hotspots.

This success has established Helium as a viable competitor to traditional telecom providers, fueling demand for HNT and resulting in an 86.6% increase in trading volume over the past week.

Helium’s entry into the decentralized physical infrastructure networks (DePIN) space and its potential to offer a more affordable and reliable telecom alternative further bolster its growth prospects also contributed to the recent price rise.

From a technical standpoint, indicators are bullish, with a golden cross appearing on the daily chart and the RSI nearing the overbought region, suggesting potential for continued upward momentum.

HNT Price Analysis 

Helium’s price reached a yearly high of $11 in February, followed by a bearish phase that formed a descending triangle. It led to a low of $2.87 on July 5, a 75% decrease. 

The price began an uptrend from this low, breaking above the descending resistance and reaching a high of $6 on July 24, marking a 107% recovery. 

As it reached an overbought condition, we expected a downturn as a corrective retracement to the 0.618 Fibonacci level. HNT fell slightly lower to $3.45 on Aug. 5, which was still a higher low than in July. This signaled a potential starting bullish phase, later confirmed by another strong momentum uptrend. 

Given the wave structure, HNT is likely in wave 3 out of the larger five-wave pattern. There is still more headroom, as it could interact with the 1.618 Fibonacci extension just below $8. Once the current increase ends, we can anticipate a corrective wave 4, which usually develops as a sideways consolidation before its final push to the upside. 

According to the current projection, its corrective wave 4 shouldn’t bring HNT below $6.20, and its final target for completing this five-wave pattern is $9.20.