Helium (HNT) Faces Bearish Trend as Market Volume and Price Decline Further

Helium (HNT) price has been rejected at key moving averages and is showing pressure near the lower boundary.

Market cap dropped coinciding with high trading volume suggesting heavy sell-off activity.

Despite a short recovery, HNT’s price is now $1.85, down 12.91% weekly, with volume cooling off and investor activity slowing.

Helium (HNT) is showing continued weakness as price slips further, market cap drops below $340 million, and trading volume cools—indicating reduced momentum and fading investor interest after a volatile week of sharp moves.

Bearish Price Structure on Lower Timeframes

Helium (HNT) price is near the lower edge of the channel, showing continued selling pressure.

Source: AlphaCryptoSignal Via X

The 9 EMA is at $1.875, and the 50 SMA at $2.022. The price is below both, which usually means weakness in the market. These moving averages have stopped any recent bounce attempts, acting like strong resistance. If the price breaks below the bottom of the channel, it could drop faster, with support likely around $1.60.

Volume has been up and down, with a large red candle and spike in volume on October 11, pointing to heavy selling. Since then, volume has settled down, but there’s still no clear sign that buyers are stepping in or that the price is getting ready to turn around.

Market Cap Weakness and Volatility Spike

Helium’s (HNT) market cap took a sharp hit between October 15 and 17, falling from around $410 million to below $340 million. This drop came with a big spike in trading volume, which likely means some large holders sold off or panic selling took place.

There was a short bounce on October 18 and 19, pushing the market cap back above $360 million. But the move didn’t last long and was full of ups and downs. By October 21, the market cap had settled just below $340 million, showing that interest from buyers had slowed down.

Trading volume also dropped off toward the end of the week. As of now, HNT is priced at $1.85, down 5.27% in the last 24 hours and 12.91% over the past week.

Helium Foundation Initiates Market Buybacks

A new announcement from the official @helium Twitter account revealed a strategic change in handling network emissions. The team has been burning Helium Mobile revenue daily and will now begin buying an equivalent amount of HNT from the open market. This action replaces the previous method of using treasury funds and will be executed using an automated DCA strategy.

The team confirmed this shift will not affect their flexibility in conducting ad hoc purchases through centralized exchanges, automated market makers, or OTC deals. These daily buybacks aim to reduce circulating supply while supporting token value through increased demand.

Additionally, Helium is exploring the launch of a Digital Asset Treasury (DAT). This initiative will acquire HNT via the open market and OTC and participate in yield-generating activities. The team emphasized this move aligns with the long-term vision of expanding access to public market investors.

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