The Huobi Token price has reached a critical area of support. And It could be a long way down if HT fails this important test.
Huobi Token is currently trading at $12.056, down $0.106 (-0.88%) on the day and -6.5% lower in the last 7 days.
It’s been a sluggish week of performance for Huobi. In fact, HT has equaled its longest losing streak so far in 202, trading lower for 5 consecutive sessions. A close in the red today will set a new record of 6.
The Huobi Token price started the month well and, by the 3rd of June, was trading at $17.66 and showing signs that it would soon reclaim the $20.00 mark.
However, it has since lost 30%, dragged lower by Bitcoin’s failure to hold $40,000. Furthermore, Huobi Token is now 70% below its 13th of May high at $39.98.
This latest bout of weakness has arrived at what could be considered a critical juncture. Subsequently, the price is testing the support of a major trend line, which it must desperately hold to avoid further losses.
The daily chart clearly shows two long-term, rising trend lines.
The first of the two had been a previous resistance level and could be considered the starting point of this year’s bull run. When HT crossed this trend resistance on the 3rd of Feb, it marked the start of a 2 week, 300% rally to $26.60. This trend is currently situated around 25% above the latest price, at $15.04.
The second important trend line can be seen at $11.75. This could be viewed as a major trend and supported the price rally since January. Notably, this line proved the low point in the May collapse, and after HT tagged the trend at $10.72, the price snapped higher.
As it stands, the Huobi Token price is exerting pressure against the major support at $11.75. A close below $11.75 would suggest HT is no longer in an uptrend and likely lead to a retest of the May 23rd low at $10.72 and possibly lower still.
However, the price action over the last month is strikingly similar to February and March’s performance, just on a larger scale. After reaching a previous all-time high of $26.60 in Feb, the Huobi price lost 52% in a week. However, the price held at $12.55, just above the current level.
This proved a turning point, and within 2 months, HT was trading at $39.89. Therefore, I would consider this to be a make-or-break level for Huobi Token’s prospects.
What happens in the next day or two may have implications for some time.
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