In our (CG’s) quest to find new and interesting altcoins to chart, we try not to ignore exchange tokens. Besides the obvious and pathbreaking Binance Coin (BNB), there are some challengers these days trying to take some of Binance’s business. Our regular OKEx series is one such example. Today we turn to the Huobi Token (HT), which ranks #35 on CoinMarketCap.com.
We start our price analysis on the weekly HT/BTC chart. The first thing to note is that the entire history of the token (from January 2018) has taken the form of a giant sideways consolidation. This will inform us of basic buy and sell targets and price expectations in the (very) long term.
Huobi Token chart by TradingView
One other thing to note here, with the help of both volume and volume profile (VPVR) indicators, is that most of HT’s trading seems to have occurred right at the beginning. This may suggest a lot of hodlers (alas, this is not an FA). Trading has dropped off over the crypto’s trading history, although there are some bumps – and volume seems generally up during 2019.
Moving to the daily, we see that HT has been range bound since mid-July, between about 38k and 49k sats. The token has not even retested the 38k support area after breaking above it, and seems to be respecting the 55-day exponential moving average (EMA) as a support.
Huobi Token chart by TradingView
We can see that volume has been plenty volatile, but overall seems to be at a slight downtrend on the points of heavy volume. Overall momentum for the midterm looks bullish, and we see could HT continue toward the top of its range.
Adding the indicators into the mix (12-hour), we see a hidden bull divergence on the RSI going into August, which suggested an uptrend continuation. But we also see that this uptrend failed to break out after three contacts with the top, and could be considered a failed hidden divergence with a bear divergence on the recent double top. This presaged a break in the uptrend and considerable selloff.
Huobi Token chart by TradingView
We see the MACD took a pretty big hit on this trend break, but also that the histogram seems to be stabilized and turning the averages back up. Therefore, it is hard to say where the current trend lies. HT definitely seems to be having trouble chewing through this resistance.
Huobi Token chart by TradingView
Overall, it seems more likely that HT will have to retest the support zone around 38k sats. If it can hold there, it would still be forming an overall bullish pattern (see above), implying a continuation of the trend to the top of the weekly formation. Therefore, this seems like the area to watch in the coming weeks.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
