HNT Succumbs to Bearish Pressure, Targets $6.1 as Helium v3 Proposal Faces Community Uproar

After weeks of continued bullishness, Helium has now succumbed to the bearish pressure going against the grain as the broader market skyrockets in the short term.

After weeks of sustained bullishness, Helium (CRYPTO: HNT) has now joined the bears as the broader market rallies in the short term. According to the latest market data, HNT has dropped nearly 16% since last week, showing a shift in investor sentiment.

HNT’s short-term market performance is largely tied to a recent development in the Helium community regarding the upcoming Helium v3 network upgrade. With the recent community backlash, HNT may struggle to perform in the short term.

A Short Primer On Helium v3 Last week, the official X account dropped their proposal for Helium v3 that will change a lot of the old system running under the hood of the platform. According to the official blog post, the new system will feature a new economic model to “empower others to join and successfully scale with [us] on the Helium Network.”

However, the community zoomed in on one aspect of Helium v3 which increases the maximum number of HNT tokens in circulation. According to the blog post, the new model will increase the total supply through a one-time mint of 5 million HNT for HST redemption that is redeemable for locked HNT after 1 year of implementation.

Emission adjustments are also a core focus of the new economic model with an annual 10 million HNT to be emitted by the network, split equally between the subnetworks of the platform. If the proposal is pushed through in its current state, the maximum supply will increase from 223 million to 238 million - nearly a 7% increase.

This proposed economic system has drawn criticism from members of the community. One user noted that the proposal feels like a slow rug while others pointed out the inflationary measures the dev team is proposing.

“I love the ideas! [But] This part I highlighted is concerning: how can anyone propose changing the max future supply of HNT? It should be fixed forever at 230 million. Please tell me I’m reading this incorrectly,” said user PessimisticPokerist in a reply to the post.

Since the proposal is in its early stages, the current points of interest may change as community dialogue progresses.

HNT To Return To Mid-August Levels With members of the community criticizing the early proposal for Helium v3, investors and traders have sensed a flip in sentiment, turning the overwhelmingly bullish start for HNT into a bearish one. As of writing, the bears are targeting $6.1 in the short term, reversing the gains made since last month.

One thing is clear: HNT’s trajectory will continue to point downward as the bulls lose steam. If the bears are not stopped on $6.1, we might see a return to the July levels, completely reversing gains made since the start of the 3rd quarter of the year.

The bears are now in control of HNT after a strong start to the 3rd quarter. Will the bulls be able to regain control before HNT drops back to the July levels?

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