Helium’s [HNT] latest test opens door to these possibilities

ambcrypto.com:

Helium’s native cryptocurrency HNT has sold off significantly since its historic all-time-high of $59 in November 2021. Interestingly, a closer inspection reveals that it has been trading in a wedge pattern. One restricted by a descending resistance line and a structural support.

HNT’s price action over the last 10 days also reveals a retest of resistance around the $27-level last week. The retest concluded the cryptocurrency’s bull run from mid-March and marked the beginning of a bearish weekly performance.

Judging by the ongoing retracement, it looks like the bears have now retested support at the $22-level.

Source: TradingView

Here, it’s worth looking at HNT’s past performance too. According to the same, the $22-price level is a tried and tested structural support level. Furthermore, while the price was not oversold on the 1-day chart, the situation seemed different on the 4-hour chart.

Source: TradingView

As per the 4-hour chart, the price has enjoyed an uptick over the last few hours after briefly being oversold. Its MFI registered significant inflows after briefly being oversold, while the DMI registered a decrease in bullish momentum.

Finally, some of HNT’s on-chain metrics seemed to correlate with the bounce back from support. Its volume and market cap have declined significantly over the last 7 days and this was reflected in its bearish performance.

However, the same metrics have also recorded a significant uptick in the last 24 hours, with the same corresponding with the cryptocurrency’s current price action.

Source: Santiment

HNT’s bearish price action, by and large, has correlated with the wider market’s performance. It might also have been aided by a notable drop in proof-of-coverage witness activity last week. This