After fighting back in yesterday’s session, the Huobi Token price has reversed lower and may soon find itself back to a crucial support level.
Huobi Token (HT) currently trades at $15.6900 and down -72% from its April all-time high of $44.0000.
At the lowest point in Wednesday’s mauling, the price got as low as $12.2700 before recovering.
Like much of the market, the following day, the Huobi Token price tried to pare the previous day’s losses. Initially, there were some encouraging signs to the move as the price crossed two important barriers.
The 113% rally from Wednesday’s low cleared both the 100-day Moving Average, at $11.9940 and an ascending trend line around the same price.
The rally has now stalled, and HT is heading back to Wednesday’s low.
The midweek low of $12.2700 came close to hitting the support of the 200-day MA at $11.9800. The average is now viewed as a support level. Above the market, the Huobi token price will be capped by the 100-day average and the ascending trend.
The trend line at $18.8500, which has been in place since January, was a strong support area during the recent bull run. Therefore it should now be viewed as an important level of resistance.
Considering the 100-day average is pretty much at the same price, this strengthens the resistance level even more.
Until HT can break either the support or resistance, it offers no clear-cut trading opportunities.
The recent volatility tells me that the Huobi token price is unlikely to stay confined within this range for too long. And when the price eventually breaks, it could do so in a big fashion.
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