Helium (HNT), the native token of the Helium network, has shown some resilience by registering a modest 2% gain in the last 24 hours. As of press time, the price of HNT was hovering around $3.94, marking a brief uptick in an otherwise volatile market. Despite this positive price action, several technical indicators suggest that the rally could be short-lived, as weakening market momentum and bearish signals loom large on the horizon.

Positive Price Action Amid Market Pressure

Helium’s price has been experiencing a slow but steady rise since the beginning of May. While the broader crypto market has faced some turbulence, with many altcoins in the red, HNT has managed to stay afloat and post minor gains. This surge, however, is not without its risks. Many traders and analysts are now watching closely to see if this price increase is sustainable or just a temporary blip.

On the surface, the modest gains suggest that there is some market interest in HNT, which is encouraging for those holding the token. However, the momentum behind the price action is beginning to weaken, and the indicators show that the current rally may be running out of steam.

Bearish Divergence in Technical Indicators

Looking deeper into HNT’s price action, some concerning signs have begun to emerge. Two critical technical indicators—Chaikin Money Flow (CMF) and Moving Average Convergence Divergence (MACD)—are showing signals of bearish divergence, which suggests that the current price increase may not be backed by solid underlying demand.

The Chaikin Money Flow (CMF) indicator, which measures the flow of money into and out of an asset, is one of the first signs of trouble. Despite the rise in price, HNT’s CMF has been trending downward, sitting just above the zero line. This bearish divergence indicates that although the price of HNT is moving upward, the buying pressure is not strong enough to maintain this rally. If the CMF breaks below the zero line, it would signal that the overall market sentiment is shifting toward the bearish side, with sellers beginning to outweigh buyers.

The MACD indicator, another widely-used tool to assess market momentum, is also showing negative signs. The MACD line (blue) is currently below the signal line (orange), a setup that typically signals bearish momentum. This configuration suggests that the overall trend is weakening, and the risk of a price reversal is growing. As the MACD line is still below the signal line, it implies that sellers are gaining more control, potentially leading to further downward pressure on the price.

Critical Support Level: $3.84

HNT’s recent price action has been buoyed by an ascending trend line that has been intact since early April. This trend line represents a steady rally driven by demand, with the price consistently staying above this key level. However, as buying pressure begins to fade, HNT is at risk of breaking below this trend line, which currently stands at around $3.88.

A break below this critical support could lead to a significant price drop, potentially pushing HNT down toward the $2.21 level. The $3.84 support level will be crucial for bulls to defend if they want to keep the rally alive and prevent a further decline.

On the other hand, if HNT manages to hold above this trend line and sees a pick-up in buying volume, there is still a chance that the token could push higher. A sustained break above the $4 mark could provide the necessary momentum for HNT to continue its upward trajectory. However, as of now, the technical indicators suggest that this upward momentum is at risk.

Looking Ahead: What’s Next for Helium?

As things stand, the outlook for Helium’s native token is uncertain. The recent price gains, while encouraging, are not supported by strong technical signals, and the market momentum seems to be fading. If the trend line breaks and HNT falls below $3.84, it could be a sign that the bullish run is over, and a deeper correction could follow.

However, it’s important to note that cryptocurrency markets are highly volatile and can change direction quickly. A sudden surge in buying pressure could reverse the current trend, leading to higher prices for HNT. Traders and investors need to remain cautious and monitor the key support levels closely.

For now, Helium’s native token is at a crossroads, and its next move will depend heavily on the broader market sentiment and whether buying pressure can pick up in the coming days. If the price breaks below $3.84, the short-term outlook for HNT would look bearish, but if support holds, there could still be room for further gains.

In conclusion, while HNT has posted some gains recently, the technical indicators point to weakening momentum. The next few days will be crucial in determining whether the token can maintain its current price levels or if a reversal is imminent. Investors and traders should keep a close eye on key levels and market signals to make informed decisions.