Helium on the Rise

Louis Sykes
November 30, 2023

Now's the time.

If you don't have exposure to cryptocurrency in one shape or another in your portfolio, you're missing out. But, it's not too late. In fact, we think this is the perfect time to get aggressive.

With Bitcoin above 30,000, this needs to be an area we're pressing our bets on. When this asset class gets going, nothing can stop it. And now, with all these coins successfully resolving higher out of long-term reversal patterns, we're of the stern view that now is the time to get involved.

Expect to see a lot of trade ideas out of this space in the coming months...

One such name we discussed at length in the previous cycle was Helium $HNT. In fact, as a fun experiment, the team all tried their hands at Helium mining. But as the tide turned in 2022, Helium was one of the worst-hit names in the entire asset class, falling into a whopping 98% drawdown.

Strazza will gladly tell you he has helium miners all over the Florida Keys that he no longer pays attention to. That's the right kind of sentiment we want to see at the back of a primary trend reversal.

Helium has just resolved higher out of a long-term basing pattern. What's more is that the 200-day moving average is beginning to curl higher, indicating the primary trend has shifted in the right direction.

Here's how the chart is looking:

Though shorter-term, HNT is up for seven consecutive weeks, and the 14-day RSI is sitting firmly in overbought territory. So, we could see some mean reversion over the coming weeks, especially as the remainder of the asset class is in the process of absorbing levels of resistance.

But make no bones about it.

The primary trend has now shifted higher, and dips are for buying.

So long as Helium $HNT is above 2, we can be buyers with a long-term target up near 20, which represents the Q1 lows last year and the 38.2% Fibonacci retracement of this entire drawdown.

I know what you're thinking: a 10x price target!

But the fact of the matter is that we're in an environment where these big swings are likely to pay off. If there was ever a time to hit for the fences, now is it...

Happy trading!

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Thanks for reading and please let us know if you have any questions!

Allstarcharts Team

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