Why Huobi’s volume spike has raised eyebrows
- 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%.
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.
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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.