Why is the price of Huobi Token up 12% today as rest of the market slumps?

Huobi Token (HT) has been up 12% successful the past 24 hours and is 1 of the fewer cryptocurrencies bucking the wide downtrend.

Trading astatine implicit $7, HT's terms is up implicit 80% since the opening of this week, which is besides its champion play show since February 2021.

HT/USD regular terms chart. Source: TradingView

HT's intraday gains coincide chiefly with crypto speech Huobi Global announcing the opening of Starfish Finance (SEAN) spot trading connected its platform. 

Plans to "empower" HT

Additionally, HT's awesome play gains were related to About Capital Management. On Oct. 8, this Hong Kong-based concern steadfast announced purchasing Huobi Global, 1 of the starring cryptocurrency exchanges by volume.

HT serves arsenic a inferior token wrong the Huobi Global ecosystem. Justin Sun, the laminitis of the Tron blockchain task and reportedly the halfway backer of About Capital, said connected Oct. 10 that they would empower HT to boost Huobi Global's marque and concern endeavors. 

今天是我入职Huobi第二天，我代表Huobi Global顾问委员会发言，我们深知振兴Huobi的关键就是赋能HT，HT兴火币才能兴！未来将有许多大动作围绕HT展开，包括品牌升级，重磅赋能，商务合作，我们会团结一切能团结的力量，共同把@HuobiGlobal 做好！

Nevertheless, the HT terms rally has exposed it to imaginable profit-taking scenarios, per a premix of method indicators.

Huobi Token overbought? 

On the regular illustration below, HT's comparative spot scale (RSI) has crossed supra 70, which is considered an "overbought" signal. That typically follows with the terms entering a consolidation oregon correction period.

HT/USD regular terms chart. Source: TradingView

Similarly, the HT terms rally witnessed this week accompanies a driblet successful trading volumes, suggesting traders person been increasing doubtful astir the longevity of the uptrend. Again, it could effect successful a terms correction successful the coming days.

The 3rd bearish awesome comes from HT's play chart.

HT/USD play terms chart. Source: TradingView

Notably, HT's terms present tests a absorption confluence made up of its 50-week exponential moving mean (50-week EMA; the reddish wave), the 0.786 Fib enactment adjacent $7.30, and a horizontal level adjacent $7.40 that has historically served arsenic enactment but present acts arsenic a terms ceiling.

Related: Crypto markets to spot ‘explosive volatility’ soon: Arcane Research

The lawsuit of a pullback from this absorption confluence could person HT driblet toward the $3.4-$3.8 country by the extremity of this year, a 50% terms decline.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.