helium approves hip 51 proposal

The price of Helium coin is rising 8% this morning in early crypto trading action with the token now accumulating a 21.5% gain since June started following the launch of the so-called Helium Chapter 2 – an initiative that seeks to make Helium a “network of networks”.

Through the project’s community-led governance system, the developing team has introduced a Helium Improvement Proposal (HIP) to upgrade the protocol so it can support additional networks aside from just Internet of Things (IoT) devices.

According to the details provided in HIP 51, every new network added to the ecosystem will have its own token and governance but all of these assets will be redeemable for HNT – Helium’s native token – at any given point in time.

Validators will also be rewarded in each network’s individual token if they decide to support a particular network instead or along with the Helium mainnet. Other networks that may now be supported by Helium include 5G Hotspots. The native token of this subnet – or subDAO as the project refers to them – was named MOBILE.

According to Helium’s official governance website, HIP 51 was approved with 96.94% votes in favor. A total of 5,187 votes were cast and the voting process concluded on 7 June.

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What is Helium?

Helium is a layer-one blockchain that seeks provide the required infrastructure to facilitate the connection of Internet of Things (IoT) devices.

One of the issues that have prevented this market to grow is that processing the amount of data that comes out of every device and developing a universal language that they can use to communicate has been challenging and most tech firms have found it uneconomical.

Helium manages to connect IoT devices cost-effectively via a protocol known as LoRaWan that has already been implemented on over 800,000 hotspots. The protocol incentivizes miners to provide coverage to Helium powered-devices via LongFi.

Multiple providers sell Helium-enabled hotspots that users can acquire to actively mine HNT tokens. These miners are rewarded for providing coverage and recording transactions on the blockchain.

Helium Coin Technical Analysis & Price Predictions

helium coin price chart
HNT/USD (FTX) price chart – Source: TradingView

So far in 2022, Helium’s native token HNT has lost nearly 70% of its value as the valuation of cryptocurrencies as a whole has been negatively impacted by a shift in macroeconomic conditions around the globe.

The latest uptick that started in late May has potentially formed a double-bottom pattern. This is a bullish price action pattern that can lead to sizable gains in the near term if it plays out as expected.

To confirm that the pattern is in play, the price action must climb above its most recent high – which is standing at around $17 for Helium coin.

That said, even if the price does not break that level, if it gets near it in the next few days that could result in gains of up to 40%.

Momentum indicators appear to be favoring a positive short-term outlook for HNT as the Relative Strength Index (RSI) is standing at 60 (bullish) while the MACD has climbed to positive territory on the back of steadily increasing histogram readings.

Algorithm-Based Forecasts for Helium Coin (HNT)

According to estimates from Gov.Capital, the price of Helium is expected to decline below the $6 threshold in the next 14 days.

However, the mid-term and long-term outlook for the coin according to the algorithm is positive as the price is expected to rise to $64 and $481 per coin one year from now and five years from now respectively.

Meanwhile, estimates from another third-party forecasting service, Wallet Investor, see the price fluctuating in a range between $10 and $13 per coin in the next 14 days.

As per its mid and long-term prospects, the algorithm is predicting that the price of Helium will crash to around $1.66 per coin in the future resulting in an 85% downside risk compared to today’s price.

These mixed views illustrate the significant volatility that the crypto market is experiencing at the moment. Traders and investors are encouraged to proceed with caution since, even though Helium can be a promising project to invest in, macroeconomic conditions remain the most influential factor on crypto valuations at the moment.

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