The Helium price has dropped 25% from the all-time high set earlier this month as investors digest the magnitude of the project’s rapid rise.
Helium (HNT) saw explosive price growth in the first ten days of November, more than doubling to a record high of $59.27. However, the price action has been less predictable since then, and the token has chopped around in the $39.00-$48.50 range. Nonetheless, HNT is currently +52% in November, bringing the year-to-date performance to over +1700%. As a result, the project’s market cap has grown from under $100m in January to around $4.5 billion, ranking it the 42nd-largest cryptocurrency ahead of privacy coin Monero (XMR).
Similar to IoTeX (IOTX), helium is a blockchain-powered network for Internet of Things (IoT) devices. The project started in 2013, with the Helium mainnet launching in 2019. However, similar to many altcoins, most of the HNT’s appreciation has come in 2021. But whilst the performance is impressive, the magnitude of the rally could leave the price vulnerable to heightened volatility for the foreseeable future.
HNT Price Analysis
The 4-hour chart shows the Helium price is consolidating in a broad trading band. Above the market, the resistance between $46.50-$48.50 is the biggest obstacle for the bulls. Successful clearance of $48.50 should encourage the price higher towards the ATH.
Below the market, support is between $38.55 (Nov 19th low) and $41.40 (November 22nd low). And as long as HNT holds above this area, the outlook is positive. However, a close below $38.55 would suggest demand has diminished, potentially forcing an extension towards the October 30th high at $32.28.
Until a catalyst arrives in either direction, the path of least resistance is sideways. Therefore, my current view is neutral.