Helium (HNT), a prominent decentralized physical infrastructure network (dePIN) operating on the Solana blockchain, has recently captured attention with a significant price surge. This momentum is largely attributed to strategic on-chain activities and emerging bullish technical patterns, sparking optimism about its future trajectory.
Bolstering Fundamentals: Buybacks and Soaring Activity
A key driver for HNT's recent performance is its token buyback program, initiated on October 20th. This program strategically utilizes network fees to repurchase HNT tokens, effectively reducing the circulating supply and providing an initial price boost that has since stabilized. On average, $30,000 worth of HNT is repurchased monthly, signaling consistent supply-side management. Complementing this, Helium has witnessed a substantial surge in on-chain activity. Token transfers recently peaked at $30 million, while daily DEX trading volume soared to $3 million, marking a weekly high. Notably, buy orders have consistently outpaced sell orders over the past week, indicating strong demand.
Technical Outlook: Awaiting a Breakout
From a technical perspective, HNT is currently exhibiting a "bottoming pattern," holding steadfastly above the critical $2 support level. The altcoin is navigating within a developing head-and-shoulders trading range, hinting at a potential base formation. While a tug-of-war exists between buyers and sellers, buyers currently hold a slight edge. For a definitive bullish breakout, HNT needs to decisively close above the $2.74 resistance zone. Successfully sustaining this level could pave the way for a climb towards the $4 mark. However, the broader cryptocurrency market's inherent volatility poses a risk, with a breakdown below the current pattern potentially invalidating this optimistic outlook and leading to further consolidation or a decline.
