Crypto Market Review, October 12

As soon as the famous exchange acquired Justin Sun as an advisor to focus on bringing more value to Houbi Token, investors started to push their money towards the exchange’s utility token as its value increases for the third day in a row.

A 60% rally

The day the announcement was made, the token almost immediately increased in value by more than 25%, bringing a lot of attention to the exchange and the token used by it. However, volume profiles and inflow data suggested that the rally was purely speculative and investors were simply trying to make quick profits.

However, a correction after a massive price increase was not as significant as it usually is after assets face a massive wave of new inflows, and the value of HT has only declined by 1.3%. The next day, the HT token saw a massive 30% increase in less than 10 hours.

Unfortunately, it is not clear what fueled another bull run, but its nature completely replicates the behavior of investors on October 10, which is why market manipulation may be part of the strong growth we saw.

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The token broke through the important resistance level of $5.9 and the most likely scenario now would be short or medium term consolidation ahead of the continuation of the movement.

It’s not yet clear what Justin Sun will bring to the table to make HT more interesting to investors, but the opportunity for intrinsic growth could be long-term fuel for the asset.

Ethereum is at the bottom again

As we mentioned in our previous market review, Ethereum will most likely move in an extended consolidation channel for the foreseeable future. However, the asset will bounce from a lower to upper edge of the channel, making scalping a viable trading strategy in a range bound market.

Today, ETH is trading at $1,298 – the lower price range of the consolidation channel. The last time the second largest cryptocurrency on the market reached that value, we saw a bounce to $1,380 shortly after.

Unfortunately, it is unlikely that the market will see a sudden breakthrough from the selection tied on Ethereum, considering the existing volume profiles. However, some experts believe in a sharp increase in volatility due to the increase in Ethereum’s open interest.

High volume in a derivatives market under low volatility conditions is a perfect recipe for an unexpected volatility spike caused by a move in a spot market. Traders are most likely executing various scalping strategies or hedging their spot positions from unexpected falls below the consolidation channel, which will most likely accelerate to yearly lows.

At press time, Ethereum is trading hands at $1,294 and struggling to gain a foothold above $1,300.