HNT Declines by 79% Over the Past Three Months

Helium’s daily active addresses and transactions hit a yearly low.

Since reaching a local high of $10 three months ago, Helium (HNT) has been trading within a descending channel.

Over this period, it has dropped by 79% to a low of $2.1 recorded in the past day. Since then, it has made a moderate recovery.

As of this writing, Helium was trading at $2.59, reflecting a 14.07% decline in 24 hours. Additionally, the altcoin has seen declines on both weekly and monthly charts, dropping by 24.17% and 24.45% respectively.

What’s Driving the Current Trend?

Despite recovering slightly, multiple factors contribute to the ongoing downtrend. AMBCrypto’s analysis indicates that declining on-chain activity is a significant factor.

Helium On-Chain Activity Hits Yearly Low

Helium has faced substantial fundamental challenges in recent months, leading to a yearly low in its on-chain activities.

To illustrate, Helium’s daily active addresses have dropped from 19.1k to a one-year low of 4.9k. This massive decrease suggests low demand for the altcoin and a decrease in adoption rates.

As a result, the network exhibits lower usage, which may be due to new investors shying away or existing users closing their accounts, with a few remaining active. This trend reflects strong bearish sentiments in the markets.

Furthermore, declining daily transactions have also reached a yearly low of 18k, indicating that fewer traders are interacting with the network, often a sign of market downturns.

The altcoin market cap saw a decline to a yearly low in the past 24 hours, further supporting reduced demand. With a lower demand, there is also less capital inflow as investors remain hesitant to buy, resulting in a dwindling market cap.

The significant dip in on-chain activity puts Helium in a precarious position, potentially leading to further declines.

What’s Next for HNT?

With HNT recently hitting a yearly low of $2.1, the altcoin faces significant challenges. The dominance of sellers in the market could lead to additional losses for HNT.

The previous day saw a bearish crossover on the RSI, confirming prior bearish signals on the Stoch, suggesting the potential for continued downward trends.

If this trend continues, HNT may drop below $2 for the first time since November 2023. However, if buyers take advantage of the recent dip to accumulate, there could be an upward movement, reclaiming $3.4 and indicating a market bottom.