Holo (HOT/USD) witnessed some aggressive selling on Wednesday and started retreating from its record high established at the beginning of this week.
The move downhill appeared in the wake of a wider bearish correction across the cryptocurrency market.
Now, recent fractals suggest that the pair will decline another 20 percent in the coming session.
Yerevan (CoinChapter.com) — Holo was among the biggest losers in the altcoin market space on Wednesday that risked losing more of its valuation according to convincing price fractals.
The HOT/USD exchange rate fell by as much as 15.55 percent across the Asia-Pacific and European session, hitting an intraday low of $0.019. Bulls attempted to protect their bias heading into the US session by catching the falling pair near the sessional bottom. HOT/USD bounced back towards $0.020 but lacked strong volumes to confirm a serious follow-through.
Holo drops lower on overvaluation risks. Source: HOTUSD on TradingView.com
Additionally, the latest downside in the HOT/USD pair also appeared due to its overvaluation. The Relative Strength Indicator, which measures an asset’s momentum verses its price, started alerting about its overbought-ness as back as March 25. Therefore, the Holo market required some degree of neutralization, which led to its plunge on Tuesday and Wednesday.
What’s Next?
Holo has a history of logging price pullbacks of more than 40 percent after its recent rallies. But every correction leads HOT/USD towards its 20-day exponential moving average (the green wave in the chart above). Therefore, either the pair extends its decline towards 50- and 200-day moving averages, or it rebounds upon testing the 20-day one as support.
The fractal leaves Holo at risk on declining at least towards the 20-DMA, which now sits 20 percent lower than its current rates. Traders could use the historical indicators as a cue to open a short position towards the green wave. It also coincides with the HOT/USD’s previous support level near $0.016.
Conversely, a rebound from 20-DMA — or anywhere above the said wave — could have Holo test its previous record high of $0.031.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN.
Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
Luna Foundation Guard- LFG has spent over $3 billion in Bitcoin (BTC) in an attempt to save UST. Investors...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.