Helium Price Slides 30% from the all-time high: Is another 30% possible?

Summary:

The Helium Price surged 100% in the first half of November, before dropping 34% in the second half leaving it all to play for in December.

The Helium Price surged 100% in the first half of November before dropping 34% in the second half, leaving it all to play for in December.

Helium (HNT) has kicked off December in a precarious position. The HNT token is trading at $39.250 (-0.20%), perched on a significant support level, which could decide its fate. Similar to rival internet of things platform IoTeX, Helium investors were well rewarded at the start of last month when HNT shot higher to a record price of $59.277 and a $5.6 billion valuation. However, the price has been sloping lower since then, erasing over $1.2b of market cap. And unless Helium reverses course in the next day or two, it could be in danger of giving back all of Novembers gains.

HNT Price Forecast

The daily chart shows the Helium price is testing the $39.000 horizontal support level. Whilst the price has pierced the support several times in the last two weeks, as yet, it hasn’t closed the day beneath it. In my opinion, a close below $39.000 could attract stop-loss selling, targeting the 100-Day Moving Average at $27.744, around 30% below the current price.

However, if HNT respects support, it may turn higher towards trend resistance at $42.500. Furthermore, clearance of $42.500 dramatically improves the technical outlook, and in that event, a push towards $50.000 is likely.

Considering how much HNT increased last month, I’m veering towards the bearish scenario. However, I am on the fence until the daily candle confirms a breakdown. On that basis, today’s view is neutral, awaiting confirmation.