Helium is moving lower as leading cryptocurrencies decline after the recent attempt to gain upside momentum.
Helium Declines Amid Pressure on Riskier Assets
Helium is a decentralized network for IoT devices. HNT has recently made an attempt to settle above the $40 level but failed to develop sufficient momentum and pulled back close to the $30 level.
Its recent fate is similar to other Web3 coins like FileCoin or Theta which are trading near multi-week lows. It looks that the key reason for this weakness is the increasing connection between traditional financial markets and crypto markets.
When riskier assets find themselves under pressure, cryptocurrencies are often leading the way lower. The opposite is also true – increasing demand for riskier assets provides material support to crypto markets.
HNT Is Testing the Support Level at $31.50
HNT faced strong resistance near the 20 EMA and the 50 EMA above the $35 level and pulled back towards the support level at $31.50. This support level has already been tested several times and proved its strength.
It should be noted that RSI is in the moderate territory, so there is enough room to gain additional downside momentum in case the right catalysts emerge.
In case HNT settles below the support at $31.50, it will move towards the next support level at $30. A move below this level will signal that HNT is ready to continue the pullback from highs that were reached at the beginning of 2022. In this case, HNT will head towards the next support at $28.00. A successful test of this level will push HNT towards the support at $26.80.
On the upside, the nearest resistance level for HNT is located at the $33 level. A move above this level will push HNT towards the resistance at $34.00. In case HNT manages to settle above $34.00, it will head towards the resistance at the 20 EMA at $35.30.
Taking a look at the H1 chart, we can see that RSI has moved out of the oversold territory, so HNT will have a good chance to gain additional downside momentum in the near term in case it manages to settle below the important support level at $31.50.