Key Holo takeaways:
- Holo’s native token HOT rallies approx 22% on Wednesday.
- The upside move came as a part of an overall crypto boom.
- Upgrades related to Holo’s Elemenat chat features might have also boosted traders’ appetite for HOT.
- Nonetheless, the cryptocurrency faces overvalauation risks.
YEREVAN (CoinChapter.com) — Holo (HOT) prices surged Wednesday to reach their highest levels in more than two months amid a market-wide upside boom that saw rival digital assets undergoing a similar bullish trajectory.
The HOT/USDT exchange rate rose 22.74% to hit an intraday high of $0.1168. Meanwhile, the pair’s latest leg up stretched its rebound further upward by circa 170% if measured by its sessional bottom of $0.0049 from July 21, 2021.
In detail, the cryptocurrency market, on the whole, rebounded on July 21. Bitcoin, Ethereum, XRP, and other digital assets posted retracement rallies in their respective bazaars, partially because of fears of higher inflation led by the Federal Reserve’s decision to focus on continuing their expansionary efforts to boost the US economic recovery.
That pushed Bitcoin, a perceived safe-haven higher, and triggered lookalike rallies across rivaling digital assets, including Holo blockchain’s native crypto HOT. Meanwhile, Ethereum’s milestone London Hard Fork, which made its native token Ether deflationary through a fee-burning implementation, also boosted appetites for crypto-assets across the board.
The biggest takeaway from Holo developers came in the form of the launch of Elemental Chat. It is a proof-of-concept messaging app that represents the Holo Hosting network’s end-to-end infrastructure test. Since its launch in February, Elemental Chat has attracted about 250 peers and has processed over 5400 messages within a decentralized ecosystem.
“It is exceeding expectations because we haven’t yet: 1) optimized for full node networking AND 2) we aren’t throttling new writes to the DHT,” the project’s official Twitter handle reported, adding.
“Both signals and gossip are still working reasonably well, and there are fewer cases of major issues than our tests would have predicted. There are occasional connection problems, but improvements to state handling coming soon will likely solve this.”
Holochain Core, the group responsible for proposing and develop upgrades on the Holo network, also announced that they would soon add a sharding feature. Sharding enables the partitions of one blockchain into many smaller chains to allow them to process more transactions per second. Ethereum also expects to introduce the same feature as it moves completely from proof-of-work to proof-of-stake.
Overvaluation risks persist
Holo’s recent uptrend has pushed HOT into an overbought area.
The cryptocurrency’s daily relative strength index, or RSI, which measures an asset’s current and historical strength or weakness, returns the reading of approximately 90. An RSI reading above 70 reflects overvaluation risks, i.e., traders prefer to unwind their positions above the said threshold, leading the asset lower.
As a result, a possible HOT/USDT correction could have traders eye $0.0101 as their interim downside target, with a focus on the 20-day exponential moving average (the green wave near $0.0073) for a rebound move. Nevertheless, in the event of a persisting sell-off, the HOT/USDT rates could fall to as low as $0.0061, which is near the pair’s 50-day simple moving average (the blue wave).