The Huobi price crash gathered pace during yesterday’s cryptocurrency crash. HTU/USD had lost 58% in under two weeks at its $16.79 low.
Huobi Token, the native cryptocurrency of the Huobi exchange, had a bright start to 2021.
Trading volumes had increased as investors embraced Bitcoin, Ethereum, and a whole galaxy of altcoins in the first five months of the year.
The Huobi price rally has been fueled by increasing demand for alternative assets—especially those with exposure to the nascent Decentralized Finance (DeFi) industry.
Super-easy central bank Monetary policy has also boosted valuations across multiple asset classes.
There is also a good chance that government stimulus cheques have found their way into trading accounts. Over recent months, the lack of sporting events has left many gamblers turning to markets to fill the void.
As trading in cryptocurrencies increases, it makes sense that exchange revenues also increase. This saw the Huobi price reach a high of $39.9000 on the 12th of May.
The carnage that has gripped the crypto market in the last 10 days culminated in HTU/USD giving back 58% from the high, trading as low as $16.79 in yesterday’s session.
However, the Huobi price has managed to recover to $20.55 and is currently trading above two key support levels.
HTU/USD Technical Outlook
The Daily chart shows that during the last 24 hours, the Huobi price traded below three key support levels.
The first was the 50-Day Moving Average at $22.4300. Secondly, the 100-Day MA at $18.8800 was breached.
Finally, the decline saw the price trade through the support of an ascending trend line at $18.5300, from the January low.
As the price bounced from its low point, it recovered two of the three key levels. HBU/USD is currently trading above the support of the 100-Day MA and the important trend.
However, the 50-Day MA is now resistance, above the market, at $22.4300.
Traders should look to the broader market for cues as to what happens next. The Huobi price will remain reactive to the valuations of the assets it lists.
A close below the support levels would suggest that the price could decline to the March low of $12.000.
A close above the 50-Day MA would indicate the price has stabilized and may point to further gains.