Helium (HNT) has been experiencing a bearish trend over the past month, with a 20.11% loss in value. The selling pressure has been increasing in the market, leading to a decline in market sentiment. However, there may be hope for a recovery as some market participants are starting to shift their positions. In the derivatives market, there has been a surge in selling volume, outpacing buying volume. This has led to a drop in the Taker Buy-Sell ratio, indicating increased selling pressure.
Despite the increase in selling volume, there are signs of bullish activity in the market. Some groups in the derivatives market are opening long positions, while in the spot market, Exchange Netflows have been negative, with traders moving their assets to private wallets for long-term holding. This suggests that there may be some optimism in the market, although a broader outlook using weekly data shows that sellers still dominate the market. Traders are advised to proceed with caution due to this prevailing bearish sentiment.
On the price charts, HNT is at risk of a sharp drop as it follows a descending trendline. If selling pressure continues to increase, the altcoin could fall to its 2024 low of $2.85 and potentially drop further depending on market conditions. However, there is potential for support at $3.315, which could prevent further downside. The altcoin’s funding rate has turned positive, indicating some buying sentiment still exists in the market.
In summary, Helium (HNT) has been facing a bearish trend with an increase in selling pressure in the derivatives market. Despite this, there are signs of bullish activity emerging, with some groups opening long positions. Traders are advised to be cautious due to the prevailing bearish sentiment in the market. The altcoin faces the risk of a sharp drop if selling pressure continues to increase, but there is potential for support at $3.315 to prevent further downside. Overall, there may be some hope for a recovery in HNT’s market, but traders should proceed with caution.
