Helium (HNT) Price Prediction: ADX Shows The Current Uptrend Isn't Strong, But RSI Suggests Room For Further Growth

Helium (HNT) price has been on the rise despite the broader market downturn. What could be behind this? Although HNT is currently in an uptrend

Despite the broader market downturn, Helium (HNT) has shown an uptrend in the last 7 days, emerging as the biggest gainer among the largest DePin coins with a 3.05% price increase. However, several technical indicators suggest that the strength of this uptrend may not be as solid as it seems.

The Average Directional Index (ADX) reveals a weakening trend. Even though HNT is still in an uptrend, several indicators hint at the strength of this trend. The ADX, which showcases the strength of a trend regardless of its direction, has dropped significantly to 13.28 from a strong reading of 40 on September 18.

When the ADX is above 25, it generally indicates that the trend is strong and likely to continue. Values below 20 suggest a weak or non-existent trend.

With HNT’s ADX now well below the 20 threshold, this points to a lack of momentum behind the current price movement. Even though HNT is still in an uptrend, the low ADX suggests that the trend lacks the necessary strength to sustain itself. This weakness could result in the trend reversing in the near future as it becomes more susceptible to selling pressure or a shift in market sentiment. A declining ADX in this range indicates that traders should be cautious, as the uptrend may not last much longer if momentum continues to fade.

The Relative Strength Index (RSI) currently reflects a neutral stance in terms of market momentum, indicating that the price is neither overbought nor oversold. The RSI helps traders gauge the speed and change of price movements by measuring the magnitude of recent gains against recent losses. It oscillates between 0 and 100, with readings above 70 suggesting overbought conditions — where a price correction might be imminent. On the other hand, readings below 30 indicate oversold conditions — where a rebound may be expected.

With HNT’s RSI at just over 50, the token finds itself in a balanced zone, meaning there isn’t excessive pressure from either buyers or sellers at the moment. This positioning leaves the door open for further price growth. That happens because the RSI has not yet reached levels that would signal an overheated market.

Given that HNT has already shown an upward trend with a 3.05% gain over the last 7 days, being the biggest winner among the biggest DePin coins, the current RSI suggests that there could still be room for additional price appreciation. However, ADX shows that the current trend is not strong enough. The balance between these two is key to tracking the next steps for HNT price.

HNT’s EMA lines are currently arranged in a bullish formation, having formed a golden cross on September 23. This golden cross occurs when a short-term EMA crosses above a long-term EMA, signaling the potential for a sustained upward trend. However, despite this positive formation, the distance between the EMA lines remains relatively narrow, suggesting that the trend is not yet fully established or strong.

The Exponential Moving Average (EMA) is a technical indicator that tracks the average price of an asset over time but gives more weight to recent price movements. This makes it more responsive to price fluctuations than a simple moving average.

While the current EMA setup points to bullish potential, HNT has been facing resistance at the $8.00 level, struggling to break through this key barrier. If it manages to clear this resistance, it could rise to $8.70, offering a potential 10% gain. However, with the ADX indicating a weak trend, there’s a real possibility that the momentum may fade, which could lead to a trend reversal. If this happens, HNT’s price could drop as low as $6.30, a substantial 20% decline.

The above is the detailed content of Helium (HNT) Price Prediction: ADX Shows The Current Uptrend Isn't Strong, But RSI Suggests Room For Further Growth. For more information, please follow other related articles on the PHP Chinese website!