Helium [HNT] has gained 36% over the past day, according to CoinGlass data. Despite the recent surge, the asset remains down 38% year-to-date.
The rally has been linked to increased cell coverage usage across locations including Celina, Texas, and Waimea Valley, Hawaii, where the protocol now provides internet connectivity services. Market sentiment has reflected this optimism, with the sentiment gauge reading 5.6 on a scale between -10 and 10.
Pressure Points Suggest Caution
While near-term momentum appears positive, several technical and fundamental factors point to potential weakness ahead.
The perpetual market funding rate for HNT has turned highly negative at approximately -0.6954%, with roughly $16.94 million in positions favoring short contracts. This positioning typically applies downward pressure on prices and could lead to a decline in coming sessions.
Liquidation analysis indicates that a downward price swing could push HNT toward support levels around $0.20. Spot market data shows additional weakness, with roughly $218,000 in net outflows over the last 24 hours, suggesting that capital is leaving the market despite the recent rally.
Fundamental Concerns
Financial data from DeFiLlama reveals that the Helium protocol is operating at a loss. Accumulated losses reached approximately $178,000 at the time of writing, the lowest figure recorded so far this year. While this represents some improvement, the lack of profitability remains a concern for investor sentiment.
For the rally to sustain, the protocol would need to clear key resistance levels and reverse the ongoing trend of capital outflows and negative funding positioning.
