- Summary:
- Helium price has made a strong comeback in the past few days as investors react to the new developments in the industry.
Helium price has made a strong comeback in the past few days as investors react to the new developments in the industry. HNT token spiked to a high of $2.40, which was the highest level since December 1. It has rallied by more than 40% from the lowest level this month. According to CoinMarketCap, Helium has a market cap of more than $280 million.
Helium growth continues
Helium is a leading company that hopes to change the broadband industry. It makes it possible for people to share their broadband and earn a return from it. Users only need to install a small piece of hardware at home or in their hotspots. It uses a technology known as Proof-of-Coverage where hotspots on the network are randomly and automatically assigned proof-of-coverage tests to compete.
Helium is used around the world. Some of the top companies that use the technology are Abeeway, Airly, Agulus, and Airca among others. A key catalyst for Helium price is the recent decision for the token to move to the Solana blockchain. As part of this transition, Helium hotspots will each be represented by an NFT on Slana. As such, there will be about 1 million new Solana NFTs during the transition.
Helium’s network has been growing in the past few months. It has grown to more than 980k hotspots globally while the number of validators stands at 3,000. Further, Helium’s block height has jumped to 1,670,380. The number of 5G radios in the network has risen to more than 7,760.
Risks for Helium
HNT token faces significant risks going forward. First, there is the risk of HNT being highly volatile since it has crashed by more than 60% in 2022. The risk is that the network growth could slow in the future as mining becomes less profitable.
Second, with internet costs falling worldwide, the need for a distributed network will be relatively low. Third, it is still unclear whether there is substantial demand for Helium’s technology. Another smaller risk is that it will be moving to Solana, a network that has been tainted by FTX’s collapse.
Helium price prediction
The four-hour chart shows that the HNT price has made a strong comeback in the past few days. As it rose, the token managed to cross the important 25-day and 50-day moving averages. It also rose above the important resistance point at $1.98, which was the highest point on December 15. The Relative Strength Index (RSI) moved to the overbought level.
Therefore, Helium will likely retreat in the next few sessions as sellers target the next key support level at $1.80. A move above the resistance point at $2.25 will invalidate the bearish view.
