The HOT token continues to trade in a sideways market following its 15 per cent spike on October 29, which pushed it above the $0.0023 resistance level. After failing to continue with the breakout and dropping below the resistance level again, the prices started a bearish trend that has seen it lose 15 per cent of its value, pushing it to its current price of $0.0020.
Holochain gained traction due to its premise of an open-source framework that allowed the development of microservices that could run peer-to-peer applications entirely on end-user devices without central servers.
For many of its early adopters, this innovativeness and solution-based approach motivated them to ditch other blockchain projects for Holochain. Early adopters were also motivated by the fact that Holochain could work efficiently without a global consensus. Therefore, it was easy to scale and was highly efficient compared to other alternatives.
However, as with other cryptocurrency projects, the HOT token has faced a rough year, with its value dropping by over 70 per cent year-to-date. This is partly due to it being significantly correlated with industry trends. Therefore, in most instances, it trades in tandem with the trend of the industry, which has been in an aggressive bearish trend throughout the year.
Holochain price prediction
Looking at the chart below, today’s trading session is up by 3 per cent and on course to erase losses made yesterday when HOT dropped by over 4 per cent. The chart also shows that, since the 15 per cent spike on October 29, HOT has continued to struggle in the market, and in the past few trading sessions, it has traded in a sideways market.
Therefore, based on the recent price action, I expect the horizontal trend to continue for the next few trading sessions. There is a high likelihood that HOT will continue trading within the narrow price range of between $0.0019 and $0.0022 for the next few trading sessions. A trade outside these ranges will invalidate my horizontal price analysis.