Yerevan (CoinChapter.com) — Holo’s HOT token fell almost 6.5% on Friday, hitting an intraday low of $0.007 as traders grappled with a market-wide bearish correction mood in the wake of the Federal Reserve’s tapering signals.
The US central bank officials discussed the prospect of withdrawing its monetary support in 2023 instead of earlier-planned 2024. That includes plans to raise benchmark interest rates above the current 0-0.25% range and limiting bond purchases, both of which helped Bitcoin and rival digital assets surge tremendously since their introduction in late March 2020.
Also read: Bitcoin sentiment remains gloomy amid surging demand for Fed reverse repos
Holo was among the beneficiaries of traditional-to-crypto market money flow. Its price per token was a mere $0.000270 in mid-March 2020. More than a year later, it reached $0.0316—that’s a 16,000% jump.
But Fed’s response tends to control the ongoing inflation spikes. In turn, it makes the US dollar a less risky hedge for serious investors, which might end up sapping their short-term appetite for Bitcoin. Meanwhiles, losses in Bitcoin markets could lead to similar price declines across the altcoin market, thereby sucking Holo into the bearish tornado.
Holo Technical Setup
HOT/USDT trades amid two contrasting setups. First, the pair is down more than 70% from its record high of $0.0316, and has printed at least two lower highs and lower lows, with declining volumes. It suggests a long bearish trend is brewing.
Also read: Holo Price Follow Up 12: HOT/USDT escapes price crash thanks to Bitcoin
Second, HOT/USDT has recovered by more than 50% after bottoming out locally at $0.004, keeping some hopes alive that the pair might end up blasting higher and reclaim its record high.
Fundamentally and technically, Holo’s bias is neutral/bearish in the short term. The HOT/USDT pair consolidates inside a strict trading range defined by $0.007 as interim support and a falling trendline as resistance. It could now test the 200-day simple moving average (200-day SMA; the orange wave) as its interim downside target. Meanwhile, a break below the wave could land prices towards the $0.0004 level.
Also read: Holo Price Follow Up 11: That Scary Bearish Consolidation Flashes Again
Meanwhile, a break above the 20-day exponential moving average (20-day EMA; the green wave) and the falling trendline resistance could create a fakeout scenario towards the 50-day SMA (the blue wave). In that case, the price could rebound back towards the falling trendline to test it as support, followed by another break lower towards the 200-day SMA.
Conversely, a confirmed breakout above 50-day SMA would have Holo test the next line of resistance near $0.012.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
No time to read? Crypto articles too technical? Only want the facts?
