Here’s Why Helium Mobile Surged Over 100% in 24 Hours: A Comprehensive Analysis

Introduction

The recent surge of Helium Mobile (MOBILE) has garnered significant attention in the cryptocurrency space. The altcoin witnessed a staggering 142% increase in 24 hours, reaching a seven-month high of $0.00257 on December 2. This article delves into the factors driving the rally, including increasing network activity, growth in its mobile subscriber base, and an arbitrage opportunity with HNT.

Increasing Network Activity and Growth in Mobile Subscriber Base

Helium Mobile’s recent rally aligns with a sharp rise in Helium Data Credits (DC) usage. These credits, which are fixed-value tokens used for data transfer on the Helium Mobile network, saw a significant increase in burning activity. Daily DC burned jumped by over 30%, rising from $10,606 on November 31 to $13,868 on December 1. This surge in DC usage indicates a growing demand for the Helium Mobile network, which is driving the price of MOBILE upwards.

Moreover, Helium Mobile saw its subscriber count surpass 100,000 in early July, reaching 121,719 by December 1. The network currently operates around 21,125 active hotspots, and its IoT solution is deployed across 355,052 locations, with both figures steadily increasing. This growth in the mobile subscriber base and network activity is a strong indicator of the altcoin’s potential for further price appreciation.

Arbitrage Opportunity with HNT

One reason MOBILE’s price could be rising is that traders are taking advantage of an arbitrage opportunity with HNT. The current HNT to MOBILE swap rate is around 5,000:1, which is significantly better than the expected final rate of 7,700:1, as outlined in Helium Improvement Proposal 138. This discrepancy presents an attractive opportunity for traders to buy MOBILE and then exchange it for HNT to capitalize on the difference, driving demand for MOBILE in the short term and indirectly boosting demand for HNT as well.

Broader Bullish Sentiment in the Altcoin Market

The recent rally has also been supported by broader bullish sentiment in the altcoin market. The Altcoin Season Index recently reached a yearly high of 75, signaling the onset of a period where altcoins outperform the leading cryptocurrency, Bitcoin (BTC). This sentiment is reflected in the altcoin’s price chart, which is positioned above the upper Bollinger Band, indicating a strong bullish trend.

Technical Indicators Suggest Further Gains

The Moving Average Convergence Divergence (MACD) indicator revealed that the MACD line (blue) was positioned well above the signal line (orange), with expanding histogram bars further confirming the strengthening bullish trend. Both indicators suggest that MOBILE could continue to rally in the short term, potentially testing the $0.00296 resistance level, which was the highest point reached on April 28 and marks a 55% rise from the current price level.

Conclusion

In conclusion, the recent surge of Helium Mobile can be attributed to increasing network activity, growth in its mobile subscriber base, and an arbitrage opportunity with HNT. The broader bullish sentiment in the altcoin market and technical indicators also support the altcoin’s potential for further price appreciation. As the MOBILE price continues to rally, it is essential to monitor the market closely and adjust trading strategies accordingly.

Predictions

Based on the analysis, we predict that MOBILE will continue to rally in the short term, potentially testing the $0.00296 resistance level. The arbitrage opportunity with HNT and growing demand for the Helium Mobile network will likely drive the price of MOBILE upwards. However, it is essential to consider the risks associated with investing in the cryptocurrency market and to set stop-loss orders to mitigate potential losses.

Recommendations

We recommend that traders take advantage of the arbitrage opportunity with HNT and buy MOBILE to exchange it for HNT at a later stage. Additionally, traders can consider investing in MOBILE as part of a diversified portfolio, given its potential for long-term growth. However, it is essential to conduct thorough research and consider individual risk tolerance before making any investment decisions.

Data Sources

• CoinGecko
• Dune
• Helium Mobile Statistics
• TradingView