Here’s why Helium Mobile surged over 100% in 24 hours

Helium Mobile, a decentralized mobile and wireless network, surged 142% on December 2, driven by increased network activity and growth in its mobile subscriber base.

Helium Mobile (MOBILE) surged to a seven-month high of $0.00257 before settling at $0.001916 in early Asian trading hours on Dec. 2, up 78% in the last 24 hours, according to data from CoinGecko. It indicates an increase of 7.

While the market value of the altcoin was at $199.2 million at the time of writing this article, its daily trading volume increased almost 10 times to over $193 million.

Helium Mobile’s recent rally coincides with a sharp increase in Helium Data Credit (DC) usage. There has been a significant increase in burning activities of these credits, which are stable value tokens used for data transfer on the Helium Mobile network.

According to Dune data, daily DC burned increased by over 30%, from $10,606 on November 31 to $13,868 on December 1.

Helium offers a crypto rewards program that allows users and Hotspot operators to earn IoT or MOBILE tokens to help fuel network growth. Both of these tokens can be exchanged for HNT, which is the primary utility token used on the Helium Network.

One reason MOBILE’s price is rising is because investors are taking advantage of an arbitrage opportunity with HNT.

According to a community member, the current HNT to MOBILE swap ratio is around 5,000:1; This is significantly better than the expected final ratio of 7,700:1 as stated in Helium Improvement Proposal 138.

This could lead many investors to buy MOBILE and then swap it for HNT to take advantage of the difference; This will increase the demand for MOBILE in the short term and indirectly increase the demand for HNT.

MOBILE’s recent upward momentum is also consistent with the continued growth in its mobile subscriber base. Helium Mobile’s subscriber count exceeded 100,000 at the beginning of July and reached 121,719 as of December 1.

Helium Mobile subscribers | Source: Helium Mobile

According to Helium’s statistics, the MOBILE network currently operates approximately 21,125 active access points and the IoT solution is deployed in 355,052 locations, with both figures constantly increasing.

Meanwhile, the recent rally was also supported by broader bullish sentiment in the altcoin market, as Bitcoin (BTC) traded sideways below $100,000. The Altcoin Season Index recently reached a yearly high of 75, marking the beginning of a period in which altcoins are outperforming the leading cryptocurrency.

MOBILE rally likely to continue

On the 1-day MOBILE/USDT price chart, the altcoin is positioned above the upper Bollinger Band, indicating a strong bullish trend that will likely lead to further gains for MOBILE holders.

MOBILE price, Bollinger Bands and MACD chart — December 2 | Source: TradingView

The Moving Average Convergence Divergence (MACD) indicator revealed that the MACD line (blue) is positioned well above the signal line (orange), and the widening histogram bars further confirm the strengthening bullish trend.

Both indicators suggest that MOBILE may continue to rally in the short-term and potentially test the resistance level at $0.00296, the high reached on April 28, indicating a 55% upside from the current price level.