Helium (HNT) has been making waves in the cryptocurrency market, posting a 10% rally in the past 24 hours. As the price surges, it is quickly approaching the crucial resistance level of $9.5, raising questions about whether it can break through this barrier and continue its upward momentum. This latest price movement has caught the attention of traders and analysts, with many wondering if Helium can maintain its strength and reach new heights in the near future.

Rising Momentum and Key Indicators

Helium’s recent performance has been impressive. Over the past day, HNT has surged by 10%, supported by a 12% increase in trading volume. This surge in volume is a typical sign of healthy bullish trends, as it indicates that more investors are actively participating in the market. The sharp price increase comes after a period of consolidation, with the token now approaching $9.5 resistance.

On the daily chart, the price of Helium is following an ascending trendline, which began from its recent lows around $2.8. This upward movement has brought HNT closer to the $9.5 resistance, which is now a key level for determining the next phase of the token’s price action. If Helium can break past this resistance, it could pave the way for a further rally towards the psychological $10 level, which has been a target for many traders.

The Role of Leverage and Liquidation Data

While the bullish sentiment surrounding Helium is clear, some cautionary signs are emerging. According to Coinglass liquidation data, there has been an increase in over-leveraged positions in the market. At the $8.36 price level, a liquidation pool of 56.7K has been recorded, signaling potential risks as traders with leveraged positions may face forced liquidations if the price moves against them. This increased leverage adds volatility to the market, and any price rejection at the $9.5 resistance could result in sharp pullbacks.

Despite these potential risks, the overall sentiment remains optimistic. The rising Open Interest (OI) suggests that investors are confident in Helium’s price action, with more capital flowing into HNT. This growing confidence could fuel the next leg of the rally, assuming that the market’s response to the resistance level is positive.

Market Conditions and Broader Sentiment

The broader market conditions are also playing a role in the performance of Helium. Bitcoin’s price stability has contributed to the strength in altcoins, with HNT benefiting from the general positive sentiment. As the leading cryptocurrency continues to show strength, altcoins like Helium often follow suit, as investors seek opportunities in smaller, high-growth assets.

However, the real test for Helium will come at the $9.5 resistance level. Bulls will need strong buying pressure to push through this barrier, while any rejection could result in a pullback to the $7.8–$8 support zone. The market’s reaction in the coming days will likely dictate whether Helium can maintain its bullish momentum or if it will face a correction.

Conclusion

Helium’s recent rally and the increasing optimism around its price action suggest that a breakout above the $9.5 resistance is a real possibility. With rising trading volume, positive technical indicators, and a favorable broader market environment, HNT has the potential to continue its upward trajectory. However, traders should be mindful of the potential risks associated with leverage and volatility. The next few days will be critical in determining whether Helium can break through this key resistance and set its sights on $10, or if it will face a pullback and revisit support levels.