Huobi token is one of the top gainers over the last seven days. It kicked off with gains exceeding 24% as it opened the week at $4.16 and tried retesting $5.5 resistance but failed and closed at $5.17.
The raging bulls did not slow down as we observed another massive boost the next day. It made more progress as it flopped $5.5 and saw a high of $5.80. However, it met strict resistance and closed a little lower but accumulated gains worth more than 8%.
HT saw its biggest hike of the week on Wednesday. It flipped both $6 and $7 at a go. This was the first time it has reached this level since June. Nonetheless, it recorded gains of 27%. After this increase, a recent analysis pointed out that the asset is overbought.
It predicted that the uptrend may slow down or come to a complete halt within the next 24 hours. We observed that the latter played out as Thursday was not bullish as usual. The asset dipped to a low of $6.80 and failed to close with any notable losses or gains.
The bulls rallied on Friday but hit a wall at $8.20. Nonetheless, HT flipped the $8 resistance for the first time since May. Additionally, it ended the intraday session with gains exceeding 5%.
The run slowly ground to a halt. The last 48 hours show notable losses from the Huobi token. For example, yesterday, it almost erased the accumulated gains on Friday. The current intraday session is also following this path as it is down by 2%. Have the bulls run ended?
Huobi Token Still OverBought
One of the biggest indicators to determine market momentum is the Relative Strength Index. The previous prediction was based on the rule that an overbought asset is due for corrections. The current session marks the second consecutive loss.
Interestingly, RSI is not back to the normal level. It is still above 70 which shows that HT is still overbought. Based on this metric, we may conclude that the asset will see more downtrends.
N0nethless, other indicators are bullish. One such is Moving Average. The token is above both the 50-day and the 200-day MAs. MACD is also on an uptrend. Both the 12-day EMA as well as the 26-day EMA are maintaining their upward trajectory.
Will the bullish metrics prevail? While this is not a competition between indicators, the reading between these three tools may be confusing. Let’s look at what started the consistent increase in price.
Fresh Investments
At the start of the week, the founder of the Huobi exchange sold a large stake in the firm. This fresh investment brought more which resulted in a surge in the price of the native token. Positive fundamentals were responsible for the latest bullish round.
Tron’s Justin Sun announced he had purchased millions of the token units. This resulted in another massive change in price. The general market sentiment across the crypto industry is mostly bearish or sideways.
This lone pump is bound to meet its end sooner than many expect. Unless the bullish fundamentals keep coming, we may conclude that the bullish round has ended. HT will return to the dominant sentiment across the crypto market.
Key Levels to Watch
Key Support: $6.6, $5, $4
Key Resistance: $9, $10
Following the massive increase in price, we may expect more traders to take profit. This will increase selling pressure and result in more downtrends for the asset under consideration. One of the closest support to the “frontlines” is $6.6.
This is one of the toughest marks as it held out for 30 days, halting several attempts to break it. It remains to be seen if history will repeat itself. However, it is important to note that it took massive selling pressure to crush this support.
If HT sees such, the $6.6 barrier will flip. This may send the asset as low as $5. Recent price action does not paint this level as a very strong level as there is less demand concentration there. Nonetheless, it held out against some attempts.
The toughest on this list is the $4. Flipped only twice since 2020, we may expect to hold out against several attempts. On the other hand, huobi token see a surge in bullish news and may resume its uptrend.
This may send it as high as $9. One notable thing about this level is how strong it is as a support. The next mark that may come under test is the $10 resistance.
