As we predicted, the Helium Price crashed last week after breaking down below significant support, but HNT is still vulnerable.
Despite recovering around 20% from Saturday’s low, Helium (HNT) has halved in the last month. As we suspected, the real damage came after the price broke down below $39.00. Undoubtedly, Bitcoin’s collapse over the weekend played a part, but the writing was on the wall long before then. HNT’surge to an all-time high of $59.277 on November 11th had lifted the price far into overbought territory, increasing the odds of a severe downturn. Within a week, HNT gave back 30%, leading us to ask if another 30% drop was imminent. However, the 34% decline that came 24-hours after our report was released may have more room to run on the downside.
The daily chart shows the Helium price bounced from the support of the 100-DMA at $28.550. However, the rally lacked conviction and appears to be rolling over.
In my opinion, a close below the 100-DMA could trigger another landslide. In that event, HNT should extend towards the 200-DMA at $21.649, coincidentally around 30% below the current price.
For Helium to regain bullish momentum, the price needs to close above the October 28th (former all-time) high of $32.287. Therefore a close above that level invalidates the bearish view.
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This post was last modified on Dec 09, 2021, 07:35 GMT 07:35