Assess the prospects for an HNT recovery as selling pressure eases. A strong bounce back may not be an issue after Binance’s delisting.
Helium’s native token HNT got off to a rocky start in the second half of March. Binance delisted it from its exchange, sparking a massive outflow that led to a hard crash. But is the worst over for HNT? Should Investors Consider Buying the Dip?
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Understanding the reasons behind HNT’s crash can help investors make more informed decisions. HNT’s crash came after the Helium Network confirmed that the date for the transition to Solana would be pushed back and pushed back to April 18.
While that decision was hardly enough to change investor sentiment, it may have fueled Binance’s decision to delist HNT.
Binance has not disclosed a clear reason for its decision. However, there could be two main reasons, reportedly. First, when a change in industry conditions warrants such a shift, and second, when the native project violates Binance’s listing standards. Well, the latter is probably the reason in the case of Helium.
Deep HNT discount lures buyers back
The delisting led to FUD and a major wave of liquidity outflows. HNT fell about 53% from mid-March to a new low of $1.15. This was lower than the previous support in December 2022.
Meanwhile, HNT traded hands at $1.39 at the time of writing, representing a 19% recovery from its recent low. The re-accumulation occurred after the price fell deep into oversold territory.
HNT has recovered about $33.6 million in its market cap from its lowest range. But this is only a fraction of the $184 million shaved off HNT’s market cap from mid-March to its recent lows.
Realistic or not, here is the market cap of Helium in BTC terms
In addition, HNT volume recovered slightly as the buying pressure returned. However, it was clear that the prevailing purchase volume was still relatively low.
This reflected a slight increase in the weighted sentiment metric.
HNT’s volatility is currently at its weekly low, meaning the recent pivot hasn’t registered as a major move yet. But will HNT eventually recover?
Well, the removal of Binance prevents HNT from accessing a large amount of liquidity that would otherwise have been accessible. This could be one of the reasons for the slow recovery.
This is just the beginning of a more accessible and usable one @helium experience.
Read more about Open LNS and follow developments: https://t.co/RvSxyu1q8e
— Helium Foundation (@HeliumFndn) March 24, 2023
However, Helium has recently confirmed that it is still moving forward with its plans and development activity is still underway.
The network just announced the launch of Open SNL as its latest development. While this confirms the operation of the network, it does not necessarily guarantee a quick recovery.
Binance may also list HNT in the future, but that is still uncertain. In the meantime, buyers can take advantage of the hype ahead of the April 18 migration to Solana.
This post Helium is bottoming out in oversold territory – here’s what investors can expect next
was published first on https://ambcrypto.com/helium-bottoms-out-in-oversold-territory-heres-what-investors-can-expect/