Yerevan (CoinChapter.com) — Dos a pre-pump level await Holo (HOT) as the token shoots upward during the Monday session? Hold your bulls!
The HOT/USDT exchange rate traded at an intraday high of $0.0144 early morning, up 44.58 percent from its local bottom of $0.00946 established last week. The strong recovery move appeared almost without any concrete fundamental or catalyst, leaving analysts to see a big boom ahead based on just technicals.
For instance, independent market Michaël van de Poppe stated last Saturday that altcoins like Holo could go vertical based on hype alone. And with the token bouncing upward following a major price correction, the chances are that it could reach back to its “pre-pump levels.”
This coin, $HOT, is another example like $NPXS and $DENT.#Altcoins come back to their pre-pump levels if they go vertical like these three.— Michaël van de Poppe (@CryptoMichNL) April 24, 2021
And then, the hype is away and people are not interested anymore, as another coin has hype.
This one might be an entry soon. pic.twitter.com/uXze7NeJSb
That pretty much leaves HOT/USDT at the mercy of technical indicators. CoinChapter.com reported in the previous Holo price follow-ups that the token could be trading inside a bull flag pattern. In retrospect, bull flags point to a period of downside consolidation after a strong upside move. They typically result in a bullish breakout, i.e., the asset resumes its uptrend to eye further higher levels.
But the Holo’s so-called bull flag pattern comes with enough warnings. Technical analysts agree that a downside correction of more than 50 percent tends to invalidate the bullish continuation indicator. That said, traders could keep on selling the token to secure as many profits as they can rather than betting on highly risky upside targets.
As a result, traders now have a risky Bull Flag in making. It could take the prices severely higher with a price breakout — or simply bleed the bulls by turning lower wildly.
Trading The Holo Bull Flag
The weekend session saw the Holo prices rebounding to the upside after testing the Flag’s lower trendline as support. Meanwhile, on Monday, the prices turned lower after facing a bullish rejection at the Flag’s upper trendline.
Therefore, those with a low-risk appetite could trade intra-range to earn smaller profits with a little caution, i.e., opening a short position towards the lower trendline on a pullback from the upper trendline and a long position towards the upper trendline on a rebound from the lower one.
A breakout above the Flag’s upper trendline — wherever it appears — accompanied by strong volumes, expect to send prices up to 150 percent higher. Meanwhile, a breakdown move risks crashing the Holo prices to $0.0074.