Helium’s 10% rally under threat: Will HNT see a 35% drop next?

Key Points

1. HNT faces a critical supply zone between $3.90 and $4.24, which historically triggered significant drops (42%, 17%, and 46% in past instances).

2. Spot market participants sold approximately $2.17 million worth of HNT over four days, indicating sustained outflows.

3. The derivatives market shows increased Open Interest (4% to $7.34 million), but the Long-to-Short ratio favors sellers, with $364,000 in added liquidity from short positions.

4. Technical indicators like the Money Flow Index (MFI) suggest HNT is overbought (above 80), signaling potential correction, while the Accumulation/Distribution (A/D) indicator hints at sustained downward pressure.

5. Trading volume declined 10% despite price rise, typically a red flag for bullish momentum.