Altcoin
HODL crypto hits $0.000289 – Can it recover from the 200% dip?
Selling activity has surged due to profit-taking by traders who bought during the dip.
- HODL crypto has gained by more than 11% in 24 hours amid a slight spike in trading volumes
- The low-cap altcoin has also seen its market capitalization surpass $2.7M
HODL [HODL], a token based on BNB Chain, has gained by 11% in 24 hours and was trading at $0.000289, at press time. During this time, the altcoin’s trading volumes have surged by 7% to $677,000.
Data from the decentralized exchange (DEX) platform GeckoTerminal shows that HODL has a market capitalization of $2.7 million. On the other hand,
CoinMarketCap data shows that the token has a self-reported circulating supply of 725 trillion, ranking it among the low-cap altcoins.HODL is a fairly new coin with only 18,000 holders. This makes it prone to volatile price movements if there are any sudden spikes in trading volumes. For instance, after hitting an all-time high of $0.001022 on the 13th of December, it has since plunged by more than 200%.
HODL crypto price analysis
HODL’s one-hour chart indicates bearish trends in the lower timeframes. The Relative Strength Index (RSI) was at 44, suggesting more selling than buying activity.
This selling pressure could be due to profit-taking by traders who bought during the rally.
Source: GeckoTerminal
The Awesome Oscillator (AO) indicator also highlighted the bearish thesis due to the AO histogram bars that are in the negative region.
If these bearish trends prevail, HODL could plunge lower and erase the recent gains.
Can BNB Chain’s presence in DeFi stir gains for HODL?
HODL seeks to offer DeFi products on the BNB Chain, which ranks as the fifth-largest blockchain by Total Value Locked (TVL).
While this could stir some gains for HODL, it will need to attract usage and become competitive against the other DeFi protocols that run on the BNB Chain.
However, the DeFi industry has been among the top-performing sectors in the last two months, which could bode well for HODL.
Will HODL sustain its gains?
After reaching an all-time high four days ago, HODL has since plunged by over 200% as traders rush to book profits, fueling the downtrend. These price swings are typical with new tokens, where slight changes in trading volumes can significantly influence price changes.
Buying activity around HODL has weakened, causing the rally to stall. If sellers remain dominant, it could accelerate the downtrend and cause the price to drop further. Conversely, increased buying activity could fuel gains.
