Key Holo Takeaways
- It’s falling.
- It could keep on falling.
- It could try to rebound as it keeps on falling.
Yerevan (CoinChapter.com) — Holo has confirmed its descending triangle breakdown.
CoinChapter.com was among the first outlets that spotted the potential bearish reversal pattern on the HOT/USDT daily charts. The argument was simple: the Holo token had risen by as much as 5,347 percent in 2021 in a relentless rally. That gave traders enough opportunities to take out their profits for cash or other digital assets.
Meanwhile, a correction in the flagship cryptocurrency Bitcoin from its record high of $64,671 further increased the possibility of an overall altcoin bust, given traders typically attempt to offset their bitcoin losses by selling tokens elsewhere.
Entering this week, the Holo price showed signs of an extreme yet impending downside correction. It broke below the support trendline that constituted a descending triangle pattern. Bulls attempted to reclaim the flipped price floor but failed miserably as bearish bias across the entire cryptocurrency market intensified. As a result, the Friday session looks all red.
Negative Breakout Underway
The HOT/USD exchange rate plunged by up to 34.39 percent during London’s early Friday trading hours. The pair found support near the mid-March resistance range of $0.008-0.009 and rebounded by as much as 22.32 percent (as of 0918 UTC).
As the Triangle breakdown continues, the move expects to stretch itself by 76 percent in total compared to its point of breakout, which is circa $0.0166. That somewhat puts HOT/USDT en route to $.004. The level coincides with the pair’s 200-day moving average (200-DMA; the orange wave in the graph above).
But before the Holo token attempts a serious breakdown, it expects to meet a couple of price floors to reconsider its negative bias. For instance, a pullback from $0.008-0.009 on Friday increases the anticipation of a bullish reversal. Breaking down any further makes the 100-day simple moving average (100-DMA; the purple wave) another level of interest for bulls.
That Bull Flag
The bearish trend in the Holo market has not been able to get rid of one key bullish indicator.
As CoinChapter.com discussed in the previous HOT/USDT follow-up, the “Bull Flag” pattern intends to send the pair in the direction of its previous trend. That is the technical nature of bull flags — they come as a downside consolidation move during an uptrend, giving traders ample opportunities to buy a fundamentally bullish token for cheap before the price resumes its upside move.
The only glitch in the Bull Flag theory is that Holo has corrected by more than 50 percent already from its local top. That somewhat invalidates the bullish continuation pattern. Nonetheless, with Holo attempting to reclaim the flag support during the Friday session, there is a slight possibility that HOT/USDT moves upward, after all. Should that happen, the primary downside target would be $0.024 higher from the point of breakout.
Photo by Tiana Attride on Unsplash