Holochain eyes further decline on bearish triangle setup as HOT drops 12% in a week

Holochain, Holochain eyes further decline on bearish triangle setup as HOT drops 12% in a week
image from medium.com

Key Takeaways:

  • The price of Holochain (HOT) plunged 12% in a week, following the bleeding altcoin market.
  • More downside pressure ahead for HOT as it paints a bearish triangle pattern.
  • Bitcoin’s reaction to the ongoing war between Ukraine and Russia could further determine HOT’s bias for the upcoing weeks.

YEREVAN (CoinChapter.com) – Holochain (HOT) traded at $0.0041 in Tuesday’s European session, after weeks of stalling alongside Bitcoin (BTC) and the leading altcoins.

Holochain (HOT) price actio on Mar. 8. Source: CoinMarketCap.com
Holochain (HOT) price actio on Mar. 8. Source: CoinMarketCap.com

That ‘descending triangle’ trap

HOT flipped a former support level at 0.0043, which has been instrumental in limiting its downside bias since July 2021. The token repeatedly retested the mentioned line as resistance in February 2022.

In doing so, the Holochain token formed a popular technical pattern called the “descending triangle.” In detail, descending triangles are continuation patterns, meaning they typically send the price in the direction of their previous trend. HOT has been heading lower while its descending triangle setup appears more or less like a consolidation range before it continues its move lower.

Holochain (HOT) daily price chart. Source: TradingView.com
Holochain (HOT) daily price chart. Source: TradingView.com

If the Triangle pans out, HOT could drop to pre-2021 levels, i.e., lose 50% in value in addition to plunging 87% from its all-time high of $0.031 from April.

Moreover, the Holochain token’s relative strength index (RSI) did not inspire much confidence, as it struggled below 50, which points to low return anticipation. In detail, the RSI is a momentum indicator, and it reflects the traders’ return expectations.

Also read: Holochain token (HOT) holds on to a rebound level amid fundamental growth.

However, HOT’s bearish phase was not unique, as the Q4 2021 – Q1 2022 decline came in unison with the rest of the market, as shown in the chart below.

Holochain (HOT) daily chart, featuring the comparison to top cryptos. Source: TradingView.com
Holochain (HOT) daily chart featuring the comparison to top cryptos. Source: TradingView.com

What should the Holochain bulls expect?

HOT’s future bias depends on the crypto market as a whole. As the chart above indicates, many altcoins tend to mimick Bitcoin’s price action in times of uncertainty, while the developments on their respective blockchains might take a back seat.

The previous two weeks posed additional challenges to the crypto market. In detail, since Russia invaded Ukraine on Feb. 24, the global economy has been turbulent. As a result, Bitcoin dropped alongside other risky assets, such as equities, pulling altcoins into a funnel.

Also read: Gold outruns Bitcoin as XAU hits 18-month high amid worsening Ukraine-Russian conflict.

Thus, Bitcoin’s ability to recover would possibly be the altcoin market’s ticket out of the bearish phase, and HOT is likely to follow.

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Holochain, Holochain eyes further decline on bearish triangle setup as HOT drops 12% in a week

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