How Helium’s buyback program could push HNT toward $4

Key Takeaways

What drives helium?

Helium’s value was decided by the token buyback program charges, DEX buying and selling quantity, and transfers.

Will the HNT value reverse?

If the inverse head-and-shoulders sample holds, HNT might return to the constructive aspect, altering the structural outlook.

Helium [HNT] is likely one of the main decentralized bodily infrastructure networks (dePIN) on the Solana [SOL] blockchain.

The altcoin has risen by greater than 16% up to now month, because of the buyback program that began on October 20.

The token’s every day quantity elevated by solely 25% and stood at $17 million on the time of writing. The altcoin’s value motion kinds a bottoming sample.

Nonetheless, will the token’s on-chain exercise and fundamentals enable for a whole value reversal?

HNT charges versus buyback program

Analyzing the charges the Helium Community generates along with the token buyback reveals a transparent development.

Since October 20, HNT has been utilizing the collected charges to purchase again its personal tokens, successfully managing the circulating provide.

Whereas these buybacks initially boosted HNT’s value, the affect has leveled off since early November.

A median of $30,000 price of HNT was repurchased final month.

Supply: Artemis

The buyback program considerably reduces circulating provide, probably pushing the value up because it meets demand.

Token switch and DEX quantity enhance

Equally, token switch and DEX volumes additionally elevated. In keeping with Solscan information, the whole switch reached the $30 million mark the day earlier than.

The token’s DEX buying and selling quantity additionally reached $3 million, which was the very best up to now week. The whole variety of transfers on DEXs exceeded 40,000, with the trajectory parabolic since November 11.

Gross sales totaled $1.32 million, in comparison with $1.47 million in buy orders. Buyside has surpassed sellside up to now week.

Supply: Solscan

Whereas basic and on-chain elements pointed to a bullish outlook, the value motion matched it.

Helium value motion evaluation

HNT skilled a quick dip in value however remained regular above the $2 assist degree. As an alternative of breaking down, it stayed inside the creating buying and selling vary and offered a possible base.

The Bull Bear Energy (GDP) indicator confirmed a tug-of-war between patrons and sellers, with the patrons barely forward on the time of writing.

For a bullish breakout, HNT wants to shut above the $2.74 resistance zone. Holding that degree might pave the best way for a transfer in direction of $4. If not, the value might proceed to consolidate between $2.17 and $2.74.

Supply: TradingView

Nonetheless, markets have been weak within the cryptocurrency sector. An easy denial, a breakdown under the sample, would reject this potential backside.

In abstract, HNT could possibly be pushed by the buyback program mixed with rising DEX quantity. Nonetheless, general market weak point posed a threat to this bullish sentiment.