Huobi Token (HT) is up 12% in the last 24 hours and is one of the few cryptocurrencies that is bucking the overall downtrend.
Trading above $7, HT price is up over 80% since the start of this week, also marking its best weekly performance since February 2021.
HT’s intraday gains mostly coincide with crypto exchange Huobi Global’s announcement of the opening of Starfish Finance (SEAN) spot trading on its platform.
Plans to “boost” HT
Also, HT’s impressive weekly earnings were related to About Capital Management. On October 8, This Hong Kong-based investment firm announced the purchase of Huobi Global, one of the leading cryptocurrency exchanges by volume.
HT serves as a utility token within the Huobi Global ecosystem. Justin Sun, the founder of the Tron blockchain project and reportedly the main backer of About Capital, said on Oct. 10 that they would be leveraging HT to boost Huobi Global’s brand and business efforts.
今天 是 入职 入职 HUOBI 第二 天 , 我 代表 代表 代表 代表 顾问 发言 发言 我们 深知 深知 深知 振兴 振兴 的 的 关键 就 是 赋能 赋能 赋能 赋能 赋能 ht , ht 兴火币 才 能兴! 未来 未来 将 有 许多 大 动作 围绕 围绕 展开 展开 展开 包括 升级 升级 升级 升级 升级 升级 升级 升级 升级 升级重磅赋能,商务合作,我们会团结一切能团结的力量,共同把@HuobiGlobal 做好!
— HE Justin Sun (@justinsuntron) October 10, 2022
However, HT’s price rally has exposed it to potential profit-taking scenarios, due to a mix of technical indicators.
Huobi token overbought?
On the daily chart below, HT’s RSI has broken above 70 points, which is considered an “overbought” signal. This is usually the consequence of the price entering a period of consolidation or correction.
In the same way, The rally in TH prices this week is accompanied by a decline in trading volumes, suggesting that traders have begun to doubt the longevity of the uptrend. Once again, this could lead to a price correction in the coming days.
The third bearish signal comes from the weekly chart of HT.
In particular, HT price tests a confluence of resistance formed by its 50-week EMA (50-week EMA; the red wave), the 0.786 Fib line near $7.30, and a horizontal level near $7.40 that historically It has served as support, but now acts as a price ceiling.
If a pullback from this confluence of resistances occurs, HT could drop towards the $3.4-$3.8 zone by the end of this year, which would be a 50% price retracement.
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