Trading at $0.000289 on press time, HODL [HODL], a token built on the BNB Chain, has witnessed an 11% gain in the past 24 hours. Within this period, the altcoin recorded a 7% increase in trading volumes, reaching $677,000.
GeckoTerminal, a decentralized exchange (DEX) platform, data reveals that HODL currently boasts a market capitalization of $2.7 million. Conversely, CoinMarketCap data notes that the token has a self-declared circulating supply of 725 trillion, positioning it among the lesser-known altcoins in terms of market cap.
With just 18,000 holders, HODL is considered a relatively new coin, rendering it susceptible to significant price fluctuations triggered by sudden spikes in trading activities. For instance, after hitting an all-time high of $0.001022 on December 13th, the token has experienced a steep decline of more than 200%.
Analysis of HODL Crypto Price Movements
Observing HODL’s one-hour chart reveals bearish signals in the shorter timeframes. The Relative Strength Index (RSI) currently stands at 44, indicating a prevalence of selling pressure over buying activity.
This selling pressure might be attributed to traders capitalizing on profits garnered during the recent surge in prices.
Furthermore, the Awesome Oscillator (AO) indicator supports this bearish sentiment, with the AO histogram bars situated in the negative territory.
Should these bearish trends persist, HODL could continue its downward trajectory, potentially wiping out the recent gains.
Could BNB Chain’s Role in DeFi Drive HODL’s Growth?
HODL aims to introduce DeFi services on the BNB Chain, one of the top five blockchains by Total Value Locked (TVL).
While this strategic move could potentially boost HODL’s performance, the token must attract users and demonstrate competitiveness against other DeFi protocols operating on the BNB Chain.
The DeFi sector has shown remarkable growth in the past couple of months, an encouraging sign for HODL’s prospects.
Is HODL Likely to Sustain its Recent Progress?
Despite soaring to an all-time high a few days ago, HODL has since plummeted by more than 200% as traders rush to secure profits, fueling the downtrend. Such volatile price movements are common among new tokens, where slight shifts in trading volumes can trigger substantial price fluctuations.
Buyer interest in HODL has waned, leading to a stagnant rally. A continued dominance of sellers could hasten the descent and drive prices lower. Conversely, heightened buying pressure could reignite gains for the token.