Helium (HNT) Experiences 24% Pullback Following Surge to $4.50 – Analyzing the Altcoin’s Future Trajectory

After a notable rally that propelled Helium (HNT) to the $4.50 price level, the altcoin has undergone a 24% retracement as of April 18, 2025. Market analysts are now scrutinizing key support zones and on-chain metrics to determine whether this correction represents a healthy consolidation or the beginning of a deeper downtrend. Technical indicators suggest potential accumulation phases, while network activity metrics provide insight into developer and user adoption trends. The next critical levels to watch include the $3.20 support and the 200-day moving average, which could dictate HNT’s medium-term price action. Traders are advised to monitor trading volume patterns and macroeconomic factors that may influence the broader cryptocurrency market’s risk appetite.

Helium bulls are on the way to forcing an uptrend

Source: HNT/USDT on TradingView

After the bullish structure break, HNT hit a local high at $4.5. It has since retraced to $3.4, but the crypto retained its bullish structure. The next long-term support levels were at $3 and $2.25. A move to these levels may be possible for two reasons.

The first is the potential volatility around Bitcoin [BTC]. Right now, it is unclear if BTC even formed its local bottom. A drop below $83k could usher in market-wide selling and affect HNT negatively. The other reason would be the lack of overwhelming buying pressure.

The OBV tested its February highs during its bullish market structure shift, but the OBV was unable to climb higher. This alluded to some weakness from the bulls. If the OBV can establish an uptrend in the coming days, the chances of another Helium rally might be higher.

Source: HNT/USDT on TradingView

On the 4-hour chart, the RSI revealed that momentum slowed down over the past week. The price action highlighted that the bearish breaker block (red) at $3.7 served as resistance over the past couple of days. The OBV’s struggles to make a new high was clearer on this timeframe.

At the time of writing, HNT was trading around the 50% retracement level, and could bounce higher and beyond $3.7. This would require higher buying pressure so, traders can watch the OBV for clues of a breakout past $3.7.

The structure was bearish on the 4-hour chart, and a BTC drop below $83k would strengthen the short-term bearish bias for Helium. In this scenario, traders can look for opportunities to sell, targeting a retracement to $2.75-$3.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion