- Huobi Token has formed a descending triangle pattern.
- The team changed Huobi Token burning mechanism.
Huobi Token was under pressure on Thursday despite the relatively positive news about the ecosystem HT token dropped to $6.2, which was about 14.5% below the highest level on November 6. It has jumped by over 66% above the lowest level in November, giving it a market cap of more than $953 million.
Huobi introduces new HT burning mechanism
Huobi Token is the native token for Huobi’s ecosystem. It is a leading exchange that handles millions of dollars on a daily basis. According to DeFi Llama, the network has over $3.54 billion in assets and $2.3 billion in clean assets. Clean assets refers to all assets in its ecosystem other than those it has issued itself.
Huobi Token and other centralized exchange (CEX) tokens have been under pressure following the collapse of FTX and its FTX Token. Following this collapse, there have been questions about the real value of these tokens and their biggest holders.
According to Huobi, HT’s value comes from the work it does for the ecosystem. Some of the services it supports are VIP handling fee discounts, merchant verification, and independent promotions. Further, the platform regularly repurchases the token. Still, I have doubts about the real value of these solutions from a fundamental perspective.
In a statement, Huobi announced that it would change the burning mechanism of Huobi Token. As of Thursday, the number of tokens burnt rose to 296.02 million, with 239.8 million tokens in existing supply. HT has a deflation rate of 0.12%.
The main change is that the token will now be burnt on a quarterly basis instead of the current quarterly. According to the statement, the first burn will happen in the first quarter of 2023. In a statement, Justin Sun, a member of the global advisory team said:
“There will be many big actions around HT in the future, including significant empowerment, and business cooperation, and we will unite all the forces that can be united to make Huobi greater together!"
Unlike other exchanges, Huobi has seen inflows in the past 30 days. It has added $1.3 billion in assets in the past 30 days and $117 million in the past 24 hours.
Huobi Token price prediction
The 4H chart shows that the HT token price has been in a slow downward trend in the past few days. In this period, it has moved slightly below the 25-day and 50-day moving averages, which is a bearish sign.
A closer look shows that the token has formed a descending triangle pattern that is shown in red. Therefore, the token will likely have a bearish breakout in the coming days. This view will be confirmed if it moves below the important support level at $6.08, the lower side of the triangle.
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