Helium migration is delayed meanwhile HNT continues to go down
The Helium network was in the process of migration to the Solana network but it seems to be delayed now. Amidst all that HNT price continues to go down.
The readiness group is an organization within the Helium community responsible for overseeing the matters related to helium migration to Solana. Recently in an update on the migration process, they disclosed that the dates have been changed from March 27 to April 18. The price of the native currency of Helium HNT dropped even more, after this news.
There was a certain reason behind delaying the process. First and foremost the organization wanted to overlook some operational improvements and conduct additional testing to run the process smoothly.
Secondly, they were waiting for necessary governance votes before proceeding. Lastly, the helium community wanted to make sure that everyone was ready for the migration before it happens. However, despite the delay, the reports indicate that the migration preparations were still on track.
The price movement of HNT
While the entire market is going through a bullish phase this week, HNT the native token of Helium is on an entirely opposite track of a bearish trajectory. After the announcement of a delay in migration, the token right away met an 18% drop in its price. That too only within a day. The current price is 55% lower than its February High. It went down to $1.53.
This suggests that the current price of HNT is oversold and at the key support line, which has been retested in the past. Indicating the probability for its price to bounce back anytime.
Binance decision to delist HNT following the news of migration must have been a contributing factor. The exchange delisted HNT on 24th March. Which led to an outflow surge of HNT from exchanges, ultimately affecting its price.
So while there are chances for HNT to bounce back. traders need to keep in mind other factors too like the delisting of Binance.
HNT Lack of liquidity
Moreover, Binance’s announcement of delisting HNT has also taken away its access to a significant amount of liquidity. This lack of liquidity will lower the chances for HNT to bounce back.
Despite all that certain data suggests that the volume and volatility factors of HNT are at their highest over the past 24hrs now. This shows that there has been a lot of activity on the Helium Network. Thus a consequent increase in buying and selling of HNT. These factors can surge the HNT price in short term.
Even though the increase in volume and volatility of HNT suggest increase selling pressure. The market cap of Helium indicates reaccumulation at $224.2 million before weakening to $212.4 million. Despite the buying pressure, it is not strong enough to sustain the current price.
Overall the market cap seems to be in the favor of a further downtrend in HNT prices. Thus the traders should be cautious before entering any position of HNT while considering the possibility of further price drop.