Huobi Token price remained under pressure on Monday even as the exchange continued to defy gravity in terms of inflows. HT dropped to a low of $5, which was the lowest level since November 23rd. It has crashed by more than 27% from its highest level in November.
Huobi inflows are rising
Huobi is a leading exchange that was recently acquired by a Hong Kong company with ties to Justin Sun, the founder of Tron. It was started in China and then moved its operations to Singapore. Today, the exchange processes millions of dollars worth of cryptocurrencies every day.
HT or Huobi Token is the exchange token for the exchange. Unlike BNB, which serves the Binance Smart Chain, HT is similar to FTX Token and Voyager Digital. Its only utility is that it powers the ecosystem by providing discounts and promotions to users. Following the collapse of FTX, investors have questioned the real worth of these tokens.
Huobi Token price dropped even as data revealed that the exchange was seeing some inflows. While Binance lost $8.1 billion in the past 1 month, Huobi’s inflows have been about $40 million in the same period. Its 7-day inflows were worth over $17 million.
Huobi is one of the few major exchanges that have seen inflows in the past few weeks. For example, Bitfinex has lost $616 million in the past 30 days while KuCoin has lost $96 million. Crypto.com and OKX have added $747 million and $416 million, respectively.
It is unclear how much of Huobi’s inflows came from Justin Sun and Tron. In the past few weeks, Sun has deployed millions of dollars to support USDD, its stablecoin.
Huobi Token price prediction
The 4H chart shows that the HT price has been in a strong bearish trend in the past few days. As it dropped, it moved below the important level at $6, which was the lowest level on December 13. It has moved below the 25-day and 50-day moving averages.
Therefore, with no major utility, there is a possibility that the HT price will have a bearish breakout. If this happens, the next key support level to watch will be at $4.
