Join Our Telegram channel to stay up to date on breaking news coverage
The Huobi price saw an uptick of 11% yesterday and has dropped by a mere 2% at the time of writing. Since it is a token that powers a cryptocurrency exchange, should you buy it? Or is it just another fluke to attract you with a false sense of security?
Huobi Token Price Action – It is the Second Uptick in Two Days
Huobi came out on Twitter about two days ago to introduce a new icon, a new vision, and a new name. By dropping “global” from its name, Huobi signals that it is going to change a lot of things in the crypto space.
Its goal is to piece together the pieces of trust together FTX shattered at the beginning of November.
The revelation by Coindesk that Sam Bankman-Fried has supported Alameda Research through the native token of the FTX exchange was a shock to many. And once Binance pulled back from the deal, it was the last straw. It also didn’t help that many major publications shrugged off this probably “the biggest crypto debacle since Mt Gox”. They were quick to say, “it happens,” and the crypto investment community took that as an offense.
After the FTT price fell from $22 to just above $1, the same fate followed for other cryptocurrencies powering a centralized exchange. CRO dropped to $0.056 before rebounding, and the Huobi Token (HT) plunged nearly 50%.
The message from the cryptocurrency community got clear — they don’t trust centralized exchanges as much anymore. Many took that as a sign to restrategize by firing 30% of their employees before Christmas. On the other hand, Huobi took a different stance. The China-based cryptocurrency exchange has rebranded on 21st November 2022.
It happened a fortnight after the announcement that About Capital, a Hong Kong-based management services company, would be acquiring Huobi Global. This news led the HT price to rise by nearly 14% a week ago.
The Reason Behind Huobi Token’s Latest Rise
However, the reason behind the latest price action is something else. Huobi recently announced that it would be airdropping the digital token of the Caribbean Island of Dominica.
Huobi announced that this new “Dominica Coin ” or DMC, will get to users soon on Huobi Prime.
To those unversed, Huobi Prime is a token listing platform for high-quality tokens. And with the announcement that the Dominica Token will soon arrive on this platform, bulls took momentary control of the market.
DMC is a Tron-based cryptocurrency with endorsement by the Dominica government. In its official statement, Huobi said that this listing is paramount for the blockchain ecosystem since it is the first time a nation has officially authorized a token offering.
Huobi Token Price – Technical Analysis
The price charts show the Huobi token accumulating around the $6.8 mark. The hourly candle charts indicate that the bears are bushing back every time the bulls are on the verge of creating a bullish engulfing pattern.
The candlestick charts also show that the HT token has been moving above its 20-day MA since 25th November. As a result, the price of the Huobi token has been up by 40% since last week.
What does this price action tell us about this token’s future? At the time of writing, the Huobi Token is trying to find support at $6.7 (0.5 fibs). If it does, it will move up to retest $7.3 (0.38 fibs). However, a major development must happen for the HT price to push upwards to $10, which requires a rally of more than 50%.
Get Into Better Crypto Investments Available Right Now
The FTX-led crash has made people realize the need for technical indicators and tools that help capture the volatile nature of the crypto market. Dash 2 Trade delivers just that. It is a modern crypto intel and social trading platform that brings the best investment analysis features and testing tools under one roof.
Powering this platform is a crypto asset of the same name. Dash 2 Trade is currently available on a presale at a discount price of $0.0513. This token is going fast, and its listing on LBank has recently been confirmed. Invest in it today to grab that “early mover” advantage.
Related Articles
Join Our Telegram channel to stay up to date on breaking news coverage
