Helium's price continues to rise, but chart analysis points out at a correction ahead.
Key Takeaways
- The HNT price has been in an uptrend since June.
- The Daily chart RSI indicates overbought conditions.
- A Correction is expected, but higher prices should come after.
Solana-based project Helium, which received notable attention in the last bull cycle, has now shown a staggering recovery. On December 5, it shot up by slightly over 110%, from its low of $2.70 to a high of $6.
The rise was part of a larger uptrend that started on November 2 when the price of HNT was $1.50 but was propelled by a major announcement around Helium’s new mobile plan product.
Can the price of HNT continue to rise amid these fundamental changes?
Helium Mobile
Helium (HNT), a decentralized wireless network project, recently launched an affordable $20/month unlimited cell phone plan in the United States, significantly lower than the average monthly phone bill in the U.S.
Helium Mobile initially piloted this service in Miami, combining their partner’s nationwide 5G network with the Helium Mobile Network, which was built and supported by the community. The service’s cost-effectiveness is attributed to its use of infrastructure owned by individuals who earn MOBILE tokens for sharing data.
Additionally, Helium has partnered with T-Mobile to offer access to a large 5G network.
HNT Price Analysis
From its all-time high of $57 in November 2021, the price of HNT has been in a major downtrend that brought it down to $1.18 on March 23, 2023. This was its lowest point since December 2020 before the price started its trajectory to an all-time high.
This horizontal support level was reestablished in June, and after a couple of interactions, we saw the first significant rise to $2.25 on August 6. The first higher low followed on September 11 at $1.35, after which the price started this uptrend, resulting in a 110% price spike.
It reached a high of nearly $6, increasing 327% since September, and is likely a wave 3 out of the five-wave impulse from June. The daily chart RSI is pointing out at the potential end of the uptrend as it entered the overbought zone at 86%.
If this is true, now we are to see wave 4 correction to the 0.382 Fibonacci retracement level at $2.85 but then one more higher high for wave 5. Its target would depend on the level at which wave 4 ends, but per our current projection, it can reach the territory slightly above $8.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
