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 $0.031.
Photo by Mayank Dhanawade on Unsplash
The blockchain industry is buzzing with several projects hosting presale events to introduce their platform…
The impressive performance of Layer2 solutions like Optimism (OP) and Option2Trade (O2T) this week is…
As the altcoin market has begun to surge in terms of value, many are looking…
Prepare to witness an epic clash of memes as the battle for supremacy unfolds in…
Summary: What’s This For ($WTF) is a revolutionary Token on the BASE Smart Chain (an…
Enter the electrifying world of cryptocurrency, where innovation meets humor, and witness the rise of…