Over the past week, Helium’s native token (HNT) has experienced a significant surge in its value, reflecting a broader uptrend in the cryptocurrency market.
The price of HNT rose by over 18%, making it one of the top gainers among the CoinGecko top 100 crypto assets, trailing only behind Toncoin (TON) and Sui (SUI). This sharp increase in Helium’s token price comes at a time when Bitcoin’s price predictions are pointing towards a potential decline below $50,000, highlighting a notable divergence in market movements.
Growth in Helium Mobile Subscribers
The recent surge in HNT’s price is primarily driven by a notable increase in Helium’s mobile subscribers, which have now exceeded 112,000.
This growth is particularly striking given that only two months prior, the subscriber count had crossed 100,000, which had already triggered a 40% spike in HNT’s price. This represents a remarkable 300-fold increase over the past year, underscoring the rapid adoption and expansion of Helium’s decentralized wireless network.
Helium operates as a Decentralized Physical Infrastructure Network (DePIN) project, which focuses on the Internet of Things (IoT) sector. The network enables IoT devices to communicate and share data through nodes known as Hotspots.
These Hotspots serve a dual purpose: functioning as wireless gateways and simultaneously mining Helium’s blockchain. The growing number of Hotspots and increased network usage indicate that more devices and users are leveraging Helium’s infrastructure for data sharing, tracking, and communication.
Technical Analysis and Price Predictions
Helium’s price, up 128% in two months, shows potential for continued gains, according to technical analysis. The token reached a yearly high of $11.06 on February 12, 2024, before experiencing a decline to $2.88. Following this dip, HNT rebounded from the 0.786 Fibonacci retracement level on July 1, 2024, marking the start of its current rally.
Resistance is anticipated around the $9.00 mark, aligning with the 23.6% Fibonacci retracement level. A break above this resistance could propel the price towards $11.50 – $12.00, potentially approaching the previous high. If momentum continues, HNT could reach as high as $14.00, representing a potential 63% increase from its current price.
Support and Future Outlook
Support for HNT is crucial between $6.00 and $7.00, aligning with the 61.8% Fibonacci level. If the price retraces, this zone will be key for maintaining upward momentum. Overall sentiment remains bullish, driven by Helium’s innovative DePIN model and strong growth, with technical indicators suggesting further potential gains.
Helium’s recent price surge reflects strong fundamentals and growing adoption of its decentralized network. With positive technical indicators and an expanding user base, HNT is positioned for potentially substantial gains in the near future.
Also Read: Helium Network Tokens Surge as U.S. Expansion Progresses
