Helium price could enter beast mode, technicals suggest

Helium, the leading player in Decentralized Public Infrastructure, has been gaining significant momentum recently. The token has surged for three consecutive days, and on Sunday, December 15, it hit the crucial resistance level of $9.52. This marks a notable achievement, as Helium has risen by 228% from its August lows, boosting its market capitalization to an impressive $1.6 billion.

Several factors are contributing to Helium’s rapid rise. First, data from the futures market reveals a strong increase in open interest. According to CoinGlass, open interest soared to over $11 million on Sunday, up from $9.35 million just a week ago. This increase indicates strong demand for the asset, as more investors place unfilled call and put orders in the futures market. The majority of this activity is happening on platforms like Bitget and OKX, which further suggests growing confidence in Helium’s price potential.

In addition to the futures market activity, the rise in burned HNT tokens is another crucial factor driving the price. A report from Messari highlighted that over $250,000 worth of HNT tokens were burned in November. Tokens are typically burned to access data credits for using the Helium network, which reduces the overall circulating supply and adds upward pressure on the token’s price. This deflationary action supports the growing bullish sentiment around HNT.

Helium’s rally also accelerated following the community vote on HIP 139, a proposal to phase out rewards for Citizen Broadband Radio Service (CBRS) on the Helium network. This decision will involve Nova Labs assisting with the transition by re-flashing equipment to stock firmware, impacting around 4,000 CBRS holders. The vote’s approval signaled a positive shift in the network’s future, contributing to further investor confidence.

Helium Price Analysis

Looking at the daily chart, we can see that HNT has made strong gains recently, rising from $5.22 earlier this month to $9.52. This is a critical level, as Helium previously struggled to break above this price on December 2 and December 7. Notably, the current price is slightly above the key support level of $8.667, which was its highest point in September.

Helium has also maintained strong support above the 50-day and 25-day moving averages, which is a clear sign that the bullish trend is intact. Additionally, the price has moved above the middle line of the Andrew’s pitchfork tool, a common technical indicator used to predict potential price movements.

If Helium manages to break through the $9.52 resistance level, this could invalidate the triple-top pattern, which is typically considered a bearish signal. A successful break above this resistance would point toward further gains, with the next key target being $11, a year-to-date high, which is about 18% higher than the current price.

Should the price continue to climb, breaking past $11, it could potentially reach $20, signaling a major bullish breakout. Helium’s solid technicals, combined with its increasing market activity and token-burning mechanisms, make it a strong contender for further price appreciation in the coming months.

Co-founded in 2013 by Amir Haleem, Shawn Fanning (Napster’s founder), and Sean Carey, Helium has established itself as a major force in the decentralized infrastructure space. As the Helium network evolves and attracts more attention, the token’s price may continue its bullish trend, potentially entering a “beast mode” as it breaks new resistance levels.