Key Takeaways:
- Holo token price is likely to pare 2023 gains if its downtrend continues.
- HOT price is moving inside a bearish pattern.
NEW DELHI (CoinChapter.com) — Holo’s native token HOT extended its bear run in May as the wider crypto market faced macro headwinds. Investors remained on the fence, waiting for the next bearish or bullish trigger before entering the market.
As a result, the crypto market cap (TOTAL) has dropped over 15% from its 2023 high of $1.5 trillion in April. Another reason for the absence of market participants could be the US debt ceiling trouble, which remains unresolved at the time of writing.
The Holo token price likely mimicked wider market trends. Moreover, HOT prices are moving inside a bearish technical pattern called the ‘double top.‘
The pattern forms when an asset’s price form a local high and retraces to a support level before forming a consecutive high nearly equal to the previous high.
An asset breaking below the support line of the pattern confirms the pattern. The price target for the token is equal to the distance between the top and support level, calculated from the breakdown point.
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Hence, HOT price might drop nearly 36% to reach $0.00102 if it confirms the pattern.
Holo Token Price Faces Stiff Resistance From Bears Near EMA Levels
Meanwhile, bears have aggressively defended the 20-day EMA (red wave) and 50-day EMA (purple wave) dynamic resistance zone since late April this year. HOT price dropped nearly 3% to form a daily low near $0.00154 before recovering marginally.
Long wicks at the bottom of the daily candles highlight the presence of buyers near the $0.0015 support level. However, if the downtrend continues, HOT price could breach the immediate support level and drop to $0.00143 before recovering.
Conversely, if HOT price rebounds after consolidating, the Holo token price must breach its 20-day EMA resistance near $0.00165 to inject confidence in the rally. A break and hold above immediate resistance might carry HOT price to the 50-day EMA resistance near $0.00178 before paring gains.
The relative strength index for HOT remained neutral, albeit nearer to the oversold region, with a value of 35.91 on the daily charts.
