HNT's potential to drop below the low of 2024: Analysis

* HNT selling volume has exceeded the buying volume in the derivatives market

• HNT may establish a new two-month low as more sellers increase pressure on this altcoin

Helium [HNT] has been in a declining phase over the past month, recording a decrease of 20.11%. In fact, market sentiment towards HNT has decreased along with the increasing selling pressure across the market.

However, there may be a ray of hope for the recovery of HNT as some market participants begin to shift. For example, in the derivatives market, some groups are gradually opening long positions, while in the spot market, buying activity is picking up.

Explosive selling volume

In the futures market, the selling volume has surpassed the buying volume. This is reflected in the Taker Buy-Sell ratio, also known as the Long/Short ratio, dropping to 0.963. When this ratio drops below 1, it indicates increasing selling pressure during that period, usually within 24 hours. A ratio above 1 indicates stronger buying pressure in the futures market.

While sales volume has risen sharply over the past few weeks, the number of outstanding derivatives contracts fell 19.80% to $4.96 million, as tracked by Open Interest.

The decrease in Open Interest along with the decrease in volume often indicates a scenario of market decline.

Source: Coinglass

In the spot market, sentiment also differs slightly when the money flow has been negative for the past two days. In other words, this means that traders are transferring their assets to their own wallets for long-term storage. When this index tends to be positive, it is a sign of selling activity.

About 250 thousand USD worth of HNT has been transferred out of the exchanges in the past two days – 119.48 K USD the previous day and 130.52 K USD in the last 24 hours.

Source: Coinglass

However, despite recent positive sentiment, a broader look at weekly data shows sellers still hold the upper hand.

Therefore, there is a reason for traders in the HNT market to be cautious.

Prices under 2.85 USD depend on the buyer

On the price chart, HNT faces the risk of a sharp decline as the price continues to trend downwards, pushing the asset price lower.

If selling pressure increases at this level, HNT could drop to $2.85—the lowest level of 2024, set on June 18—and may decline further, depending on market dynamics.

Source: TradingView

However, the extent of the decline will depend on the support level at $3,315. If this level holds, it could provide a cushion and prevent further decline. With the funding rate of this altcoin turning positive at the time of writing at 0.0176%, it indicates some buying sentiment is present.

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