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Why Huobi’s volume spike has raised eyebrows

2min Read

Huobi’s market share volume leaps by 11%, a seemingly positive sign. Yet a shadow looms as negative flows dominate, hinting at underlying issues.

Huobi volume spikes, but the direction might be a cause for concern

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  • Huobi’s market share volume has spiked by 11%.
  • Negative flow has dominated Huobi’s volume as HT fails to impress.

According to latest data, Huobi [HT] has recently witnessed a surge in its transaction volume. While this might initially seem like a positive development, a closer look at other crucial indicators raises concerns that this upswing could foreshadow difficult times for the exchange.


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Huobi volume spikes

On 7 August, Kaiko unveiled a post unveiling the market share volumes of various exchanges, including Huobi. According to this observed data, Huobi’s market share volume underwent a remarkable transformation, soaring from 3% to 11% since the start of July.

The surge in volume positioned the exchange favorably ahead of some of its counterparts.

Huobi registers negative flow

However, a more intricate narrative emerges when we blend this freshly acquired surge in volume with the most recent insights gleaned from Nansen’s data. The Nansen data lays bare a tinge of complexity that might underlie this spike in volume.

In particular, the data from Nansen disclosed that the inflow to Huobi had been negative over the past 24 hours. This data showed that nearly $33 million had left the exchange—a conspicuous signal of substantial asset withdrawals.

The spark behind this recent outflow could be the news of the apprehension of some of the exchange’s executives. This development could have stoked the flames of this adverse outflow, painting a broader tableau of challenges for Huobi’s landscape.

HT shows a lack of response

Huobi Token’s daily timeframe chart depicted somber price movement accompanied by dwindling trading volume. Notably, despite recent developments, the token’s trajectory appears remarkably resilient to change. As of this writing, HT was exchanging hands at approximately $25, revealing a minor uptick of less than 1%.

Huobi Token/USDT price trend

Source: TradingView

Moreover, a closer examination of the Relative Strength Index (RSI) highlights intriguing patterns. While there were a few moments when the token briefly ventured above the neutral line, most of the year saw it languishing below it. 


How much are 1,10,100 HTs worth today?


As of this writing, the RSI was below 40—a sign that the token was entrenched within a bearish trend.

The prevailing negative outflow affecting Huobi’s trading volume could be a transient wave of Fear, Uncertainty, and Doubt (FUD). Yet the forthcoming weeks promise to reveal the exchange’s resilience in the face of these challenges.

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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