Huobi has had its ups and downs, just like every other entity in the crypto space. Not surprising. Before the Chinese 2021 ban on cryptocurrency transactions, the COO of the company, Robin Zhu, came under investigation in China for unspecified reasons.
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.
If something like this happened today, it would cost the exchange $95 million in Bitcoin and $4 million in Litecoin.
Huobi has also been negatively affected by China’s ban on virtual currencies. As a result, About Capital decided to acquire the business 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.
As of this writing, HT is trading at $6.62, up 61 percent in the last seven days, data from Coingecko show, Wednesday.
今天是我入职Huobi第二天，我代表Huobi Global顾问委员会发言，我们深知振兴Huobi的关键就是赋能HT，HT兴火币才能兴！未来将有许多大动作围绕HT展开，包括品牌升级，重磅赋能，商务合作，我们会团结一切能团结的力量，共同把@HuobiGlobal 做好！
— H.E. Justin Sun (@justinsuntron) October 10, 2022
Going For The Green Option
Prior to the release of the recovery plan, the price of HT was fluctuating near the $4.3395 support level, which has exhibited strength over the past few months. This support level effectively blunted the market drop from May to June, which saw numerous crypto currencies falter.
In August, the token increased by 31% during the course of three days. From August 15 to August 19, the token dropped roughly 21.57%. The following month, the coin pull reversed and formed a downward trend that temporarily breached $4.3395 support.
Along with the founding of the Advisory Board, the acquisition instilled new trust in the organization. From that moment forward, the price tested the prior support level and yesterday, October 10, it finally broke through. Nevertheless, investors should be wary of a market drop.
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.
If the pullback occurs within the next few days, the bulls should defend the 50 Fibonacci level, as any breach by the bears will result in increased selling pressure for the token.
Investors can also consider the Bollinger band, since the upper part of the indicator now supports the move.
Additionally, the 20-day to 150-day SMAs serve as dynamic support for the coin. However, even if the correction occurs, HT’s future remains promising.
HTUSD pair trading at $6.53 on the daily chart | Featured image from Crypto Briefing, Chart: TradingView.com