Helium, a dominant force in Decentralized Public Infrastructure, has experienced a three-day consecutive rise. On December 15, Sunday, it surged to the crucial resistance level of $9.520 as the recent rally picked up momentum. The token has seen a remarkable 228% increase from its August lows, elevating its valuation to $1.6 billion.
The rally coincides with a strong uptrend in open interest in the futures market. Data from CoinGlass shows that the open interest climbed to over $11 million on Sunday, up from last week’s low of $9.35 million, with most of it concentrated in Bitget and OKX. Open interest, an essential metric gauging unfilled call and put orders in the futures market, typically rises when an asset witnesses robust demand.
Another factor potentially fueling the rally is the continuous increase in the number of burned HNT tokens in recent months. A Messari report indicates that over $250,000 worth of HNT was burned in November. HNT is burned to obtain data credits for network usage. The rally accelerated after the community voted for HIP 139, which proposed phasing out rewards for Citizen Broadband Radio Service on the Helium Network. Subsequently, Nova Labs will assist in the CBRS transition by re-flashing equipment to stock firmware, affecting around 4,000 CBRS holders.
In terms of price analysis, the daily chart reveals that the HNT price has made significant progress, leaping from $5.22 earlier this month to $9.52 today. This level is significant as it previously failed to be surpassed on December 2 and 7. It is also marginally above the key support at $8.667, its highest in September. Helium has stayed above the 50-day and 25-day moving averages and has slightly exceeded the middle line of the Andrew’s pitchfork tool. A decisive break above the $9.52 resistance level would nullify the triple-top pattern and suggest further upward movement. If so, the next target to monitor would be the year-to-date high of $11, approximately 18% above the current level. A breach of that could potentially propel it to $20. Helium was co-founded in 2013 by CEO Amir Haleem, Napster founder Shawn Fanning, and CTO Sean Carey.
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