Key Holo Outlook
- 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.
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.
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.