Huobi Token Trading Above Downtrend Line, Ready for Rally?

Bullet Points:
• Huobi Token (HT) was trading at $5.0506, on a crossline with a downtrend line.
• A confirmed close above the downtrend line could give bulls more leverage.
• Bulls could flip the downtrend resistance line into support and trade on the previous $5.0463 – $5.4595 range for the next few days.

Huobi Token (HT) has been relatively unshaken despite the FUD surrounding the Huobi exchange recently. At press time, HT was trading at $5.0506 and was on a crossline with a downtrend line. A confirmed close above the downtrend line could give bulls more leverage and allow them to trade on the previous $5.0463 – $5.4595 range for the next few days.

The token had seen a sharp rally between 21 – 25 November last year and then turned into a downtrend until the time of writing. After a multi-week price consolidation between mid-December 2022 and early January 2023, HT broke below the range but was kept in check by the $4.6110 support. A price recovery from this support could confirm a trend reversal if it flips the downtrend line into support.

The RSI was slightly above the midpoint after rising from oversold territory. In addition, the Money Flow Index (MFI) was in the overbought zone, suggesting strong buying pressure. Therefore, bulls had a chance to flip the downtrend resistance line into support and trade on the previous $5.0463 – $5.4595 range for the next few days. However, a price rejection at the downtrend line would give bears an advantage. But bears‘ efforts could be kept in check by the $4.6110 – $4.8250 range support.

Overall, HT was in bullish momentum and if the bulls break above the downtrend line at $5.0463, it could confirm a trend reversal. However, a break below $4.8250 will invalidate the above bias. Therefore, traders should keep an eye on the price action at the crucial levels and make their trades accordingly.