Holochain Price Analysis HOT / USD: Standing Ground
HOT is attempting to stabilize its price.
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- Holo is attempting to stabilize above its 200-period moving average on the four-hour time frame
- Short-term technical analysis shows a lack of bullish reversal patterns
- The daily time frame highlights that a large inverted head and shoulders pattern is still valid
Holo is attempting to stage a meaningful recovery above its 200-period moving average on the four-hour time frame for the first time since May this year. The besieged cryptocurrency has been on a one-way decline since late June this year, erasing a significant portion of its 2019 trading gains.
The HOT / USD pair had an impressive start to the year, as it advanced to a new all-time trading high by late-May and posted triple-digit gains from its yearly opening price. Holo has been less impressive in recent months, giving back seventy percent of its recent gains and posting seven consecutive weeks of losses.
This week the HOT / USD pair is starting to show signs that a potential medium-term price floor may have been formed. The cryptocurrency had recovered over twenty-five percent higher earlier this week, with price attempting to stabilize above key moving averages on the lower and higher time frames.
An absence of bullish patterns on the lower time frames makes it increasingly difficult to project the upside potential for the cryptocurrency in the short-term. With this in mind, stabilizing above important moving averages, such as the 50-day moving average and the 200-period moving average on the four-hour time frame may be key for continued bullish sentiment.
Short-term technical analysis suggests that the HOT / USD pair ideally needs to advance towards the 0.001000 level to secure the next round of strong buying interest. Traders should look for the cryptocurrency to hold onto its recent gains as a sign that an even stronger recovery may be coming.
Looking at the downside for the cryptocurrency if the recent recovery is just a technical correction in a larger downtrend, then a break under the August monthly trading low will be extremely bearish and may help to accelerate the next bearish phase lower towards the current January 2019 trading low.
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Holo is bearish, at 38.00 %, while the overall long-term sentiment towards the cryptocurrency is neutral, at 45.00%.
The four-hour time frame is showing that bulls failed to hold price above the 200-period moving average, although price is stabilizing above the 50-period moving average. Bulls must hold price above the 200-period moving average on the mentioned time frame for further bullish advancement.
The daily time frame highlights that price is holding above 50-day moving average, with the pair’s 200-day moving average still relatively far away, around the $0.001300 level.
A large inverted head and shoulders pattern can still be seen on the daily time frame, with bulls needing to rally the cryptocurrency by some fifty percent to reach the neckline of the pattern.
The four-hour time frame is showing that the $0.000800 level is next major support zone to watch if the cryptocurrency starts to slip. If we trade below this key technical area, then the August monthly trading low will start to come into focus.
The four-hour time frame is also showing a bearish head and shoulders pattern, which has yet to reach its full downside projection and remains valid and dangerous.
Holo has showed its first real signs of price stabilization since rapidly unravelling from its current 2019 trading high.
Bulls will need to stabilize price above the key short-term and medium-term moving averages in order to encourage the next round of technical buying interest.
For a quick overview of Holo and the HOT token, check out our coin guide.
A detailed analysis of the project is available in our DARE.