Is Helium Token Ready for Another Round of Growth?
Date: 2024-12-16 Author: Henry Casey Categories: CRYPTO PAYMENTS
Helium has been on a steady rise for three days in a row, hitting a key resistance level of $9.52 on Sunday, December 15. Since its August lows, the token has risen an impressive 228%, pushing its market cap to $1.6 billion.
One of the factors supporting HNT’s growth has been the increase in open interest in the futures markets. According to CoinGlass, open interest has reached $11 million, up significantly from last week’s low of $9.35 million. The greatest interest has been shown by traders on the Bitget and OKX platforms.
Open interest is a metric that measures the number of unsettled contracts in the futures market. An increase in this metric usually indicates an increase in demand for the asset.
An additional boost to HNT’s growth was the increase in token burns. According to a Messari report, over $250,000 worth of tokens were burned in November. The burning process is used to generate credits for accessing Helium network data, which has a positive effect on the token’s supply and demand.
The recent Helium community vote on HIP 139 proposal also impacted the token’s dynamics. As part of this proposal, it was decided to stop rewards for Citizen Broadband Radio Service (CBRS) users on the platform. Nova Labs will help adapt CBRS equipment, which will affect approximately 4,000 owners of this equipment.
The chart shows that the HNT price has risen from $5.22 at the beginning of the month to $9.52. This level turned out to be an important resistance level, as the token failed to break through it on December 2 and 7. The price is currently above the support levels of $8,667, which were reached in September.
In addition, the token is holding above the 25-day and 50-day moving averages, as well as the Andrew’s Pitchfork tool’s midline. A breakout of $9.52 could invalidate the triple top pattern and open the way to new highs.
If this happens, the next resistance level will be $11, which is 18% higher than the current price. If HNT rises further, it could reach $20.
Helium was founded in 2013 by Amir Halem, Napster creator Shawn Fanning, and CTO Sean Carey.
