YEREVAN (CoinChapter.com) – HT, the in-house token of the Huobi exchange, traded at $7.15 ahead of the New York session after gaining an explosive rally that doubled the token’s price since Oct 2. HT surged after Tron founder Justin Sun announced his membership on Huobi’s global advisory board.
However, Huobi token traders might not have enough time to laugh their way to the bank long-term. Here are several factors that might cap HT’s further upside attempts.
#1 Justin Sun buying Huobi is not a significant factor
Sun tweeted on Monday he was “speaking on behalf of the Huobi Global Advisory Committee.” He added that the key to “revitalizing” Huobi is to empower its in-house token!
In the future, there will be many big moves around HT, including brand upgrade, heavy empowerment, and business cooperation. We will unite all the forces that can be united to make HuobiGlobal well together!
said the Tron founder.
After the announcement, HT bulls pumped the price by over 70%. However, Justin Sun has been a controversial figure in the crypto market. Thus, it is not evident that his acquisition of the Huobi exchange will ultimately bring the results desired for the HT bulls.
#2 Bearish Technicals For HT Token
Despite the impressive market-defying rally, HT printed two ‘death cross’ formations on the weekly chart. In short, the death cross occurs when a short-term moving average (MA) crosses below a long-term MA, signifying a bearish phase for as long as the long-term MA holds dominance.
The death crosses between the EMA-200/EMA-20 and EMA-100/EMA-50 are marked with circles on the chart above. The mentioned crosses are a consequence of the price action and not the cause of it. However, the moving averages can hinder bullish attempts.
Similarly, HT price action recoiled from the EMA-100 wave (green on the chart above) and could decline. Additionally, the relative strength index on the daily chart stepped into the ‘overbought’ territory rising over 70. That typically signifies an upcoming trend reversal, as investors tend to pull their bets to hedge the gains.
#3 Negative macro sentiment
The fact that HT defied the overall bearish sentiment on the crypto market only underscores the limited timeline for such moves. The Federal Reserve’s aggressive quantitative tightening policy and the ongoing war in Ukraine put the global economy through the wringer.
Moreover, according to the Bureau of Labor Statistics report released on Oct 13, inflation rose by 0.4% despite the Fed’s hawkish attempts. As a result, markets now expect the Fed could institute consecutive 0.75 percentage point rate hikes in November and December.
The latter means crypto traders could expect more headwinds ahead as Bitcoin is primed for more losses amid more interest rate hikes.
