Why Did Helium (HNT) Rise 88% Today?
At time of writing, on August 29, Helium (HNT) was up over 88% on the day and was trading at $0.42. Helium’s rally was accompanied by sharp increase in trading activity and volume, up 1183% at $38.3 million.
Part of this can be explained by increased adoption in Texas, coupled with incremental short positions on futures which are now being liquidated.
The Helium network gets the most Texas adoption ever with Celina
Without a doubt, the largest factor pushing price on Helium has been the first ever adoption of the Helium network by a Texas based city, Celina.
As part of this adoption, Celina has converted its City-WIDE WiFi network into an extension of the Helium carrier network, providing businesses and public services with access to the Helium Network.
Celina’s adoption of Helium and its network is a strong signal to value project long term (HNT) bullish investors, as the network is heavily reliant on the token HNT.
Short Squeeze Explained
In just a few hours, HNT had climbed from $0.21 to $0.43, forcing traders to open short positions to try to take advantage of a reversal of trend.
However, short positions not only allowed for a short squeeze, but also contributed to price increase as the futures markets have dried up with low trading volume on the weekends.
The funding rate fell to -0.63%, signalling increased short interest in the futures market. In addition, with a singular $125,000 short position of HNT getting liquidated, a short squeeze was recorded for the first time in 2026 on a single trading day.
Though other markets had slower trading activity, the trading activity for HNT grew rapidly with trading volumes reportedly increasing by a whopping 2600% to $50 million open interest also increased by a staggering 556% to $15 million.
HNT Price Analysis After the 88% Rally
HNT is clearly in extremely bullish territory with a strong move that has pushed the token into the overbought region. With the token trading at $0.44, the one day Relative Strength Index (RSI) stands at 85, indicating buying momentum.
The ADX is also rising signaling that the current trend is strong. However, HNT is already trading below its high of $0.44 indicating that some traders are already closing their buy orders.
HNT Price Prediction: What Comes Next?
The $0.44 level should now act as a resistance level. If HNT manages to close above this level it could head to the $0.53 level, the 327.2% Fibonacci extension.
On the other hand, if there is increased selling pressure and shorting, HNT could drop to the $0.23 support region, the 61.8% Fibonacci level.
The 88% rally combines the Texas adoption, high trading activity, and the short squeeze. This rally is also characterised by increased trading activity. The extremely high RSI implies that large volatile moves are expected.
