Key Holo takeaway:
- Holo moves out of its medium-term falling channel range.
- The sudden uptrend appears in the wake of latest crypto endorsements from Elon Musk, Cathie Wood, and Jack Dorsey.
- Nonethless, Holo’s native token HOT still needs to break above a key resistance level to confirm a bullish bias.
YEREVAN (CoinChapter.com) — Holo (HOT) has finally broken out of its slumber downward channel to the upside, setting the stage for what may become an extended bullish breakout trend.
Look at that rally
The HOT/USDT exchange rate rallied by up to 50% after bottoming out at $0.00443 on July 21. Back then, the pair was trading inside the descending channel range. However, having always retreated lower after testing the channel’s upper trendline, the price action near the confident resistance range prompted CoinChapter to suggest a cautious outlook.
But things changed after three top executives from Wall Street sat together to discuss their opinions on Bitcoin, the benchmark cryptocurrencies that pretty much influences trends across the altcoin market, including Holo. Tesla’s Elon Musk, Ark Invest’s Cathie Wood, and Twitter’s Jack Dorsey said uplifting things about Bitcoin.
Bulls picked their statements as a cue to raise their bids in the Bitcoin market. As a result, the BTC/USD rates rallied and took altcoins for a similar bullish rise. Holo’s native token HOT soared, as well.
More bullish cues for Holo came from Jerome Powell. The Federal Reserve Chairman conceded at his press conference on Wednesday that rising inflation has caught central bankers by surprise. Nonetheless, he showed no concerns about the booming consumer prices and kept reassuring that they were transitory.
On being asked what he means by transitory, Powell gave a two-minute-long confusing description. First, the chief said that while he knows that inflation will rise in the near term, its year-on-year effect on the economy will remain minimal.
Bitcoin remained cautious following Powell’s statement. It was able to close above $40,000, a psychological resistance level, but more or less wobbled around the price ceiling. Similarly, Holo also consolidated under an interim resistance level of $0.0066, awaiting further bullish confirmation.
The Technical Setup
Two Fibonacci retracement graphs, drawn from high-to-low and low-to-high, tend to provide the ideal support and resistance levels for traders.
For instance, a potential breakout above $0.0066 expects traders to eye $0.0079 as their interim upside target. Moreover, an extended bullish momentum could see them expand their profit target to $0.0101, $0.0123, and so on.
Conversely, a pullback from $0.0066 could see traders open a short position towards $0.0044. A move back inside the falling channel could invalidate the entire bullish breakout setup, which, in turn, could magnetize Holo towards the lower trendline support and ultimately $0.0024.