- HNT continues to experience losses under significant selling pressure.
- With support at $6.70 now lost, HNT may face a deeper downtrend, potentially dropping below $6 if buyers do not intervene.
Helium [HNT] is indicating a prolonged bearish trend, having decreased by 6% over the past 24 hours as selling pressure grips the market.
At the time of writing, HNT was trading at $6.52, its lowest price of the month. The token is undergoing a correction after surging past $8 earlier this month, marking a multi-month peak.
HNT’s recent price surge was fueled by growth in the decentralized physical infrastructure network (DePIN) sector, which has seen its market capitalization grow to over $17 billion according to Coingecko.
Is HNT poised to fall below $6?
Traders who participated in the Helium rally are now cashing out, and if this trend persists, HNT prices may decline further.
The one-day chart demonstrates a series of descending channels with HNT correcting after brief upward moves. This bearish trend suggests that each time the price attempts to rebound, traders are quick to take profits, stifling recovery.
Source: Tradingview
The ongoing selling behavior is reflected in the Relative Strength Index (RSI), which has continually posted lower lows. The RSI line has descended further below the signal line, signaling strong bearish momentum.
Currently at 41, HNT is not yet in the oversold territory. However, the loss of support at the 0.618 Fibonacci level ($6.70) means HNT could drop further below $6. This level previously provided significant support, and if it fails to hold, a decline towards $5.47 becomes plausible.
The Awesome Oscillator (AO) reinforces the bearish outlook. The AO has plunged below the zero line for the first time since mid-July, indicating growing seller strength and the potential for HNT to continue its downward trajectory.
On-chain metrics show bearish sentiment
Activity within the Helium network is also signaling bearish trends. Data from Artemis indicates that daily active addresses have decreased to 15,700, marking the lowest point this month.
Source: Artemis
Conversely, daily volumes have spiked, with volumes rising by $5 million to reach $17 million on September 17th.
Read Helium’s [HNT] Price Prediction 2024–2025
The rise in trading volumes indicates heightened short-term trading activity. However, the lack of price appreciation alongside this volume increase strengthens the narrative of intense selling pressure, which may negatively impact the long-term price outlook.
Data from Coinglass reveals a drop in the long/short ratio to a historic low of 0.74, suggesting that many traders anticipate further price declines and are taking short positions on HNT.
Source: Coinglass
