YEREVAN (CoinChapter.com) – Helium (HNT) price has been consolidating sideways since May 11 and traded at $8.5 on July 27.
That is 85% lower than its all-time high of $59 in November. Meanwhille, HNT has been printing a bearish setup that could knock the price down an additional 65%.
HNT daily chart featuring an Ascending Triangle
The Helium price formed a bearish continuation setup known as the Ascending Triangle. It occurs when the asset price fluctuates between a flat resistance and ascending support, with a prediction to continue the bias preceding the Triangle.
In the case of HNT, traders can expect a bearish continuation, as the token already broke the support on July 25 and charted below the mark since.
Also read: Bitcoin price risks massive dip below $20K amid FOMC rate hike scare.
Moreover, the estimated drop could equal the maximum distance between the Triangle’s trendlines, at $2.6. The declining trading volumes backed the bearish outlook, mirroring the traders’ low expectations.
Meanwhile, Helium’s fundamental news favors the bulls, as the project scored a considerable investment.
Helium gets a $365M investment
Andreessen Horowitz (a16z), an investment firm that led Helium’s series A investment round with $111 million in Aug. 2021, sponsored the project again. This time, the venture capital grew the total investment to $365 million in the series D round.
However, despite the millions in investment, the network disappointed users as they did not get the passive income and high ROI they counted on.
Is Helium a bubble?
Liron Shapira, the founder of the online therapy platform Relationship Hero, called Helium a bubble, pointed out that some users got only $20 monthly earnings.
Shapira also mentioned that members of the r/helium subreddit have been “increasingly vocal” about seeing poor Helium price returns. The author asserted that the users spent $400-800 to buy a hotspot and expected $100/month, but their earnings dropped to only $20/mo.
These folks maintain false hope of positive ROI. They still don’t realize their share of data-usage revenue isn’t actually $20/month; it’s $0.01/month. The other $19.99 is a temporary subsidy from investment in growing the network, and speculation on the value of the HNT token.
commented Shapira.
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Despite the considerable investment, Helium could face further declines based on bearish technicals and despondent users. Moreover, the token also depends on Bitcoin and the overall climate of the crypto market, which is bearish at the moment.
