Helium (HNT) has faced a 5.42% drop over the past 24 hours, bringing its price down to $3.04. However, despite this short-term pullback, the general market sentiment remains optimistic. Several factors, including technical patterns and growing trader interest, suggest that the asset may be setting up for a significant upward movement in the near future. With spot traders playing a significant role in driving the price lower, many believe this could be a prelude to a major breakout, with some analysts projecting a potential upside of up to 79.15%.

Spot Traders and Their Role in the Price Drop

A significant portion of Helium’s recent price decrease can be attributed to spot traders. Over the past few days, spot traders have actively sold off HNT, contributing to an increase in selling pressure. According to market data, more than $116,000 worth of HNT was sold during the last three days, with $78,000 worth of the token being sold in just the past 24 hours. This large volume of sell-offs has caused the price to dip, but market analysts believe this could actually benefit the asset in the long run. The selling activity may be creating an opportunity for a rebound once HNT reaches a crucial support level.

Bullish Triangle Pattern Suggests Potential Breakout

Despite the recent drop, HNT continues to trade within a bullish triangle formation. This technical pattern is characterized by a descending resistance line and a horizontal support level that converge to create a triangular shape. Such patterns are often precursors to significant price movements, as they indicate a period of consolidation before a potential breakout. At the current price level, HNT is searching for support, which could trigger an upward move. If HNT maintains its position within this pattern, the asset could see a breakout that results in a potential 79.15% increase in value.

Derivatives Market Signals a Positive Sentiment

While spot traders have been contributing to the downward price action, the derivatives market is showing signs of a more bullish sentiment. The Open Interest Weighted Funding Rate has remained in the positive zone since mid-February, suggesting that the asset is experiencing an accumulation phase. This metric, which tracks the balance between open contracts and the premiums traders are willing to pay to maintain their positions, indicates that the market is still leaning towards a positive outlook for HNT.

Moreover, the Long-to-Short Ratio currently stands at 1.021, which means that there are more long positions than short ones. This is another indication that traders are generally optimistic about HNT’s price movement and are positioning themselves for a potential upside.

Traders Preparing for the Next Move

The combination of technical patterns and market sentiment points to the possibility of a strong upward move for HNT. Spot traders have contributed to the price decline, but many see this as an opportunity to enter the market at a lower price. The bullish triangle pattern and positive market metrics suggest that once HNT hits its support levels, the price may surge in the coming sessions.

Furthermore, with a growing number of buyers in the derivatives market and strong technical indicators, HNT is poised for a potential rally. If the price can break above its current resistance levels, it could ignite a sharp move upward, confirming the bullish forecast.

Conclusion

Despite the recent 5% decline in price, Helium’s overall market structure remains bullish. Spot traders may have driven the price lower in the short term, but the technical indicators and positive sentiment suggest that the asset is preparing for a significant breakout. If HNT holds its support and breaks through resistance, it could see an upside of as much as 79%. Traders and investors are closely watching for confirmation of the breakout, which could signal the start of a new bullish phase for Helium.