One of the most interesting crypto projects – Holochain, which goes by the symbol, HOT – had a HUGE day on Sunday. Its market cap rose by a massive 18% in 24 hours. With that, it’s time to talk about some HOT stuff! I’ll explain one possible reason why the price of Holochain increased dramatically on Sunday.
Holochain (HOT) Overview
Way back in April Crypto Briefing’s chief code reviewer, Andre Cronje, took a look at Holochain’s code and couldn’t believe what he saw. At the time, he said, “This is something entirely new, and it isn’t a blockchain, this is a new kind of decentralized beast, but I love it.”
So if it isn’t a blockchain, what is it?
Well, Holochain is creating a scalable and computing platform. It’s built to allow distributed apps, or dApps, to function without the bottlenecks that affect current blockchains such as Ethereum.
There’s a big difference between a decentralized network, and a distributed one. The distributed route that Holochain is taking should – theoretically – remove the need for consensus and allow data integrity to be maintained between peers, instead of across the whole network.
This is important. It means that Holochain isn’t just aiming to be a dApp. It’s aiming to compete directly with the largest cloud computing players in the world, in a $130 billion market dominated by Microsoft, Amazon, and Google.
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Crypto Briefing just completed a full, institutional-grade analysis of the token, the kind usually reserved for major Hedge Fund managers. But our DARE report is available at no cost on the Crypto briefing website.
At the beginning, I said there is some news that might be impacting the current price. Well, the HOT token is soon going to be exchanged for HOLO FUEL, which will be the long-term driver of value in the Holochain economy.
We don’t know exactly what that might be worth right now. But the tokens will be exchanged one to one, and that upcoming change may be driving the price upwards.
And the rumors about Mozilla, the creators of the Firefox browser just won’t go away. If those rumors are true, it’s possible that Holochain could be exposed to tens of millions of users – but nobody knows for sure if that’s going to happen yet.
Now considering all this, is it too late to get in? Let’s take a look at the chart.
Holochain’s Price Action: HOT/USD
After the HOT selloff which started in November 2018, HOLOChains’ token versus the US dollar appears to be looking for a bottom. More specifically, it may be in the process of completing a head and shoulders bottom pattern, which is a famous bullish reversal indicator. Sunday’s surge brought the HOT/USD pair one step closer to reaching the neckline of the reversal chart pattern which also falls on the 23% Fibonacci retracement level of 0.0006.
Another resistance that’s on the way of further gains is a very thick and bearish Ichimoku cloud. So the trading crowd may be waiting for the HOLO FUEL to fuel the HOT prices up and break above the neckline and the Ichimoku cloud to create a brand new uptrend. The long-term resistance levels are 0.0007 and 0.0009.
To sum it up, this may be a good time to get it while the price is still below the key resistance levels. And by the way, if you ever trade HOT do be careful – there’s another token, Hydro Protocol, that also goes by HOT. Don’t mix them up – and as always, do your own research, as we are not financial advisors!
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Now I’d like to hear from you. What do you think about Holochain’s platform and its upcoming changes? Do you think it’s too late to get in? Or is it worth getting in at all? Let me know in the comments, and subscribe to get more updates.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.