Yerevan (CoinChapter.com) — Holo (HOT) failed to utilize its falling wedge pattern for a bullish breakout move, but the altcoin is still eyeing a 50 percent upside in the sessions ahead.
In retrospect, CoinChapter.com earlier showed HOT/USDT trading inside a Falling Wedge structure, a technical pattern that statistically results in the price breakout to the upside. Nevertheless, bearish bias among the top-cap cryptocurrencies, including Bitcoin and Ethereum, kept small-cap tokens from pursuing upside levels.
Therefore, Holo, which was trading 1,800 percent higher year-to-date, became an ideal scapegoat to offset losses incurred from other tokens.
The HOT/USDT rate plunged twice towards $0.004, only to find bulls buying the dip to push the price upwards. On Tuesday morning, the pair’s bid reached an intraday high of $0.008, almost double its bottom level.
The rebound move appeared after Holo located confluence support at the 200-day simple moving average (the orange wave) and a descending trendline that constituted a Falling Channel pattern.
That left the HOT/USD rate with a likelihood of continuing its uptrend to test the Channel’s upper trendline as resistance. Meanwhile, it also enabled the pair to test intermediate upside levels near $0.010, the 50-day simple moving average (the blue wave), and the 20-day exponential moving average (the green wave) as primary bullish targets — ideal for long positions.
Holo Bearish Take
The worst case scenario is that Holo breaks the Channel support to the downside and retests $0.004 for a bearish breakout. The price would risk falling to $0.003 as its intermediate bearish target. The same level served as resistance during the February-March session’s uptrend.
A further breakdown would shift the downside target to $0.002. The level was support during the March session.