Holo (HOT) Follow Up 08: Even Elon Musk Couldn’t Crash It

Holo, Holo (HOT) Follow Up 08: Even Elon Musk Couldn’t Crash It
Image by Sasin Tipchai from Pixabay

Goris (CoinChapter.com) — The best thing about the Holo market lately has been its ability to resist the downside bias brought upon by top-cap tokens like Bitcoin, Ethereum, and others.

It is evident in the HOLO/USDT’s recent price actions. The pair dipped by more than 37 percent last week amid a market-wide sell-off but did not extend its downside bias beyond a specific support level. As shown in the chart below, this price floor prompted bulls to accumulate Holo tokens again, leading to an attractive rebound to the upside.

Read more: Holo (HOT) Follow Up 07: Price Rebounds as Bullish Indicator Battles Bearish One

Since then, HOT/USDT has been consolidating sideways, ignoring implosive bearish corrections in Bitcoin and other crypto markets.

Holo trades inside a falling wedge pattern
Holo trades inside a falling wedge pattern. Source: HOLOUSDT on TradingView.com

The chart above depicts Holo in a downward range, struck between two descending trendlines looking to contract with one another at a later time. Technically, the range looks like a falling wedge. Falling Wedges are bullish reversal patterns, primarily when they are appear following a strong move upward.

Holo rallied explosively before it formed the Wedge — by 967 percent after breaking above the previous consolidation range, as highlighted in the chart above. The token expects to repeat the scenario, i.e., it could blast upward on the next breakout attempt above the Wedge’s upper trendline.

Read more: Altcoins in Focus on 11/05/2021: Reef, Cardano, Holo, BitTorrent, Wink

Should it happen, the HOT/USDT exchange rate could jump by as much as the maximum distance between the Wedge’s upper and lower trendlines. That roughly brings the pair’s upside target near its previous high, which is $0.031.

Holo Bearish Take

Conversely, if Holo falls below the Wedge’s lower trendline, it would risk invalidating the entire upside theory. Therefore, the next downside target for HOT/USDT would be near $0.006 for its history of acting as support during May session. An extended sell-off would shift the downside target to the 200-day simple moving average (depicted via orange wave).

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