Yerevan (CoinChapter.com) — It could have been a bloody downside correction in the Holo (HOT) markets in the previous sessions, but a renewed upside sentiment in the Bitcoin market held that bearish thought.
The HOT/USDT exchange rate jumped alongside the benchmark cryptocurrency on Sunday — by up to 11.53 percent — to $0.008202. The weekend pump brought the pair closer to its descending trending resistance that overall constitutes a Falling Channel pattern—Holo has been fluctuating inside the structure since it topped out on April 5 at $0.0316.
Bullish/Bearish/Neutral Holo trading strategy
The consolidation pattern left HOT/USDT with three potential scenarios. First, the pair could continue consolidating sideways against an interim bias conflict in the cryptocurrency market (a majority of cryptocurrency, despite the latest pump, has failed to establish a clear upside breakout).
Second, the HOT/USDT exchange rate could break above the descending trendline resistance and test the 50-day simple moving average (the blue wave; 50-day SMA) as their next upside target. And last, the pair could pull back towards its 200-day simple moving average (200-day SMA; the orange wave) to attempt a bullish breakdown towards the Falling Channel’s lower trendline.
Therefore, bullish Holo traders need to wait for a clear breakout above the Channel resistance trendline, a green candle accompanied by a spike in trading volumes. Then, they could open a long position towards the 50-day SMA while placing a stop loss below their entry position to minimize their Holo losses (in case there is a bias reversal).
Neutral Holo traders can apply an intra-range strategy. That said, they could open a long HOT/USDT position towards $0.009-resistance on a bounce back from the local support, which, according to recent price actions, lurks near the $0.007-level (James Bond fans, don’t get emotional). Meanwhile, a pullback from $0.009 creates a decent short opportunity towards $0.007.
Meanwhile, for bearish Holo traders, it is ideal to wait for a clear break below the 200-day SMA to target the Channel’s lower trendline as their short position target. The said level coincides with the $0.004-level, illustrating a good history of acting as bounce-back levels.
Focus on Bitcoin
It is also recommended to watch Bitcoin markets for more upside/downside cures. Even a small downside correction in the benchmark crypto’s market could move the Holo token towards the Falling Channel’s support. Conversely, a breakout in the Bitcoin market could create ample LONG opportunities in the HOT/USDT market—as discussed above.