HNT Price Drops 24%: Helium's Next Move

Helium (HNT) Price Correction: A 24% Retracement

Helium [HNT] experienced a significant price correction, retracing approximately 24% from its recent high of $4.5. This followed a bullish market structure break on April 12th, where HNT surpassed the previous lower high at $3.4, suggesting a potential end to the downtrend initiated at the end of January.

Analyzing the Charts: What's Next for HNT?

Despite the retracement to $3.4, the bullish structure remains intact. Key support levels lie at $3 and $2.25. A drop to these levels is possible due to two primary factors:

• Bitcoin's Volatility: Uncertainty surrounding Bitcoin's [BTC] bottom could trigger market-wide selling, negatively impacting HNT.
• Insufficient Buying Pressure: The On-Balance Volume (OBV) indicator, while testing February highs during the bullish structure shift, failed to establish a new high, indicating potential weakness from buyers.

The 4-hour chart's OBV is crucial; a sustained uptrend here could signal another HNT rally. Conversely, a bearish breaker block at $3.7 served as resistance recently, highlighting the struggle to maintain momentum.

Key Technical Indicators

• OBV (On-Balance Volume): A key indicator of buying and selling pressure. A sustained increase is needed to support further price increases.
• RSI (Relative Strength Index): Shows momentum; recent readings suggest slowing momentum.

Currently trading near the 50% retracement level, HNT could bounce back above $3.7, provided buying pressure strengthens. The $3.7 level represents a key resistance level to watch. However, if Bitcoin falls below $83k, a bearish bias could dominate the short term, potentially leading to a retracement toward $2.75-$3. Traders should monitor the OBV closely for confirmation of directional trends.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Conduct your own thorough research before making any investment decisions.

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