Huobi, like all other entities in the cryptocurrency space, has seen its ups as well as downs. It’s not surprising. Unspecified reasons led to Robin Zhu (COO) being investigated in China before the Chinese ban of cryptocurrency transactions for 2021.
The exchange announced it had lost 920 BTC and 8,100 LTC in a Weibo post in 2014. However, at the time, it was estimated that the exchange may have lost much more – 5,000 BTC and 80,000 LTC.
This would be a costly event for the exchange, as it costs $95,000,000 in Bitcoin and $4,000,000 in Litecoin.
Huobi has also been negatively affected by China’s ban on virtual currencies. About Capital purchased the company on October 8, this year. Several days later, the company made public its decision to establish an advisory board with five participants.
Huobi’s native token soared following a tweet from Justin Sun, the founder of Tron, who laid down plans for the company’s revival.
Going for the Green Option
Before the publication of this recovery plan, the price for HT fluctuated around the $4.3395 level. However, HT has shown strength in the recent months. This level of support effectively slowed the market fall from May to June which caused many cryptocurrency currencies to crash.
The token experienced a 31% increase in August over three days. Between August 15th and August 19th, the token lost approximately 21.57%. The coin pulled reversed the next month and temporarily crossed $4.3395 resistance.
In addition to the establishment of an Advisory Board, this acquisition created trust within the company. The price tested its previous support level from that point onwards and broke through yesterday (10/10). However, market drops should not be taken lightly.
Huobi: Correction Phase Imminent
Long-term holders of the token will unavoidably sell their holdings at a profit during major rallies like the current one HT is experiencing. The token’s RSI has reached the overbought zone, which will send investors and traders strong sell signals.
Should the pullback occur within the next few hours, bulls need to defend the 50 Fibonacci Level. A breach by bears would result in greater selling pressure.
Investors may also be interested in the Bollinger band. The indicator’s upper half now supports the move.
The SMAs, which are available from 20 to 150 days in length, provide dynamic support. However, even if the correction occurs, HT’s future remains promising.
Trades in HTUSD at $6.53 daily chart. Featured image by Crypto Briefing. Chart: TradingView.com| Featured image from Crypto Briefing, Chart: TradingView.com