Helium bottoms out in oversold territory- here’s what investors can expect next
Helium’s native token HNT had a rough start in the second half of March. Binance delisted it from its exchange, triggering massive outflows which 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 may allow investors to make more informed decisions. HNT’s crash came after the Helium network confirmed that the date for its transition to Solana would be delayed and pushed back to 18 April.
While that decision was hardly enough to shift investor sentiment, it may have fueled Binance’s decision to delist HNT.
Binance did not disclose a clear reason for its decision. However, there can be two main reasons, reportedly. First, when a change in industry circumstances warrants such a shift, and second when the native project breaks Binance’s listing standards. Well, the latter is likely the reason in Helium’s case.
The delisting led to FUD and a large wave of liquidity outflows. HNT tanked by roughly 53% from mid-March to a new low at $1.15. This was lower than its previous support in December 2022.
Source: TradingView
Meanwhile, HNT exchanged hands at $1.39 at press time, which represented a 19% bounce back from its recent low. The re-accumulation occurred after the price fell deep into oversold territory.
HNT has reclaimed roughly $33.6 million back into its market cap from its bottom range. But this is just a fraction compared to the $184 million that was shaved off HNT’s market cap from mid-March to its recent lows.
Source: Santiment
Realistic or not, here’s Helium’s market cap in BTC terms
Moreover, HNT’s volume bounced back slightly due to the return of buying pressure. However, it was
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