Here’s Why Helium Mobile Soared Over 100% in 24 Hours

Helium Mobile (MOBILE), a decentralized wireless network, experienced a significant surge of 142% on December 2, reaching a seven-month high. The price surged to $0.00257 during early Asian trading hours before settling at $0.001916, still reflecting a 78.7% increase in just 24 hours, according to CoinGecko data. This sharp rise in price has been accompanied by a dramatic increase in its market capitalization, which reached $199.2 million, and a nearly 10-fold rise in daily trading volume, surpassing $193 million.

The surge in Helium Mobile’s price aligns with an increase in activity across the Helium Network, particularly in the usage of Helium Data Credits (DC). These credits, which are used for data transfer within the Helium Mobile network, saw a marked rise in burning activity, with daily DC burned increasing over 30% from $10,606 on November 31 to $13,868 on December 1. This suggests greater demand for the network’s services, which is often a bullish signal for the price of MOBILE.

Helium offers a rewards program that allows users and Hotspot operators to earn IOT or MOBILE tokens, which can be swapped for Helium’s native token, HNT. One of the potential factors driving MOBILE’s price increase is the arbitrage opportunity between HNT and MOBILE. Currently, the HNT to MOBILE swap rate stands at 5,000:1, which is more favorable than the expected rate of 7,700:1, as per Helium Improvement Proposal 138. This has likely incentivized traders to buy MOBILE tokens and exchange them for HNT, further driving the price of MOBILE up.

Another contributing factor to MOBILE’s rally is the continued growth of Helium’s mobile subscriber base. As of December 1, Helium Mobile surpassed 121,000 subscribers, with the network now operating over 21,000 active hotspots and deploying its Internet of Things (IoT) solution at over 355,000 locations. This ongoing expansion has sparked optimism among investors, fueling demand for MOBILE.

Furthermore, the broader altcoin market sentiment is also contributing to MOBILE’s price surge. As Bitcoin (BTC) hovers below the $100,000 mark, the Altcoin Season Index recently reached a yearly high of 75, signaling that altcoins are outperforming Bitcoin. This has created a favorable environment for altcoins like Helium Mobile to experience bullish momentum.

Looking ahead, indicators on the 1-day MOBILE/USDT price chart suggest that the rally may continue. The price is trading above the upper Bollinger Band, signaling a strong bullish trend. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows that the MACD line is well above the signal line, with expanding histogram bars, further confirming the bullish sentiment. With these signals in place, MOBILE could test the $0.00296 resistance level, a 55% increase from its current price, suggesting that the bullish momentum may continue in the short term.