HNT extends downside as Helium network migration date pushed back to…
- Helium’s migration to Solana gets pushed back to April.
- HNT woes get worse after Binance announced delisting.
The Readiness Working Group, an organization formed by the Helium community recently released an update on the status of its migration to Solana. HNT crashed further following the news and here’s why.
How many are 1,10,100 HNTs worth today?
The Readiness Working Group had initially settled on 27 March as the Migration date. However, the organization voted in favor of pushing the migration to 18 April after a third meeting to assess the migration status. According to the report, the migration preparations are still on track.
The Helium community opted to push back the migration date for three reasons. Firstly, some operational improvements and additional testing were necessary. The second reason was that they were waiting for necessary governance votes and the third, community readiness wasn’t 100%.
HNT price action
Helium’s native token HNT is one of the few coins that have been on a bearish trajectory this week contrary to market direction. It fell by roughly 18% within 24 hours of announcing that the migration date would be delayed. Its $1.53 press time price was a 55% discount from its February highs.
HNT traders should also note that the price is now oversold and currently at a key support line. It previously retested the same support on 14 March and at the start of the year in January. In other words, there is a significant probability of a bounce back from the current level.
While the current expectation is that HNT might bounce back, there are some factors to consider. For example, Binance recently announced plans to delist HNT on 24 March. This decision may have contributed to the sudden surge in outflows.
— Binance (@binance) March 17, 2023
The delisting announcement means HNT will miss out on a lot of liquidity that it would have otherwise accessed on Binance.
The token’s ability to bounce back might thus be limited. As far as on-chain observations are concerned, the volume and volatility metrics reached their weekly highs in the last 24 hours, at press time.
The volume and volatility surge represents the increased sell pressure but could this really mark the peak of the recent outflows? Well, HNT’s market cap metric recently showed signs of re-accumulation at $224.2 million before further weakening to $212.4 million.
Realistic or not, here’s Helium’s market cap in BTC’s terms
Those attempting to catch the falling knife may end up bleeding based on the above observation. It confirms that there is weak buying pressure and may favor more downside.