INJ Bull Run May be Halted | And More in This Week’s Crypto Update
- INJ Bull Run May be Halted
- Is Houbi Token a Hidden Gem?
- Is UNI Going to Make a Huge Move Soon?
- Crypto Trading 101: Is the OBV a Good Indicator For Trading BNB?
INJ Bull Run May be Halted
INJ’s strong bull run may soon be halted. Let’s find out why!
What is INJ? INJ is the native utility token of Injective and is used for governance, token burn auctions, and staking on the PoS network. Injective has a unique buy-back and burn mechanism for INJ, which decreases its supply over time and accrues value for the entire ecosystem. INJ has multiple use cases, including protocol governance, dApp value capture, PoS security, developer incentives, and staking. 60% of fees generated by dApps are auctioned off every week via a buy back and burn mechanism. INJ is also used to incentivize new developers building on Injective.
INJ’s Bull Run has been impressive this year, and the token is currently at its highest price since January 1st. The growth of 350% has made it an attractive asset for investors, traders, and hodlers. The continuous development and partnerships by Injective Protocol have also contributed to the price increase of INJ.
Volume Decrease and Potential Break in the Rally
INJ’s strong uptrend has been accompanied by a significant amount of volume. However, lately, the volume of INJ has been dwindling, which could indicate a potential break in the rally. Unless something extraordinary happens, INJ will likely rise at most to the $8.00 resistance before climbing down.
If INJ starts to fall, there are two significant support levels that can catch its fall. The first support level is at $3.00, which is a price level that INJ has tested and bounced off multiple times in the past. If INJ falls below this support level, the next support level is at $1.10, which is also an important price level. Moreover, the 100 Simple Moving Average (SMA) can act as a mobile support for INJ.
Bottom Line: INJ has been one of the top-performing tokens this year, and its growth rate of 350% is impressive. However, the dwindling volume indicates a potential break in the rally, and it’s likely that INJ will rise at most to the $8.00 resistance before climbing down. Nevertheless, there are two significant support levels at $3.00 and $1.10 that can catch its fall, and the 100 SMA can also act as mobile support for INJ.
Is Houbi Token a Hidden Gem?
The Houbi Token is yet to make a any positive moves this year. This may mean that it still has a lot of growth potential.
Negative Performance: A Hidden Gem?
Many people see negative swings as a bad thing for cryptocurrencies, but for HT, it may actually be the opposite. This is because, unlike other coins that have already reached higher prices, HT has yet to experience one in 2023. This means that HT still has plenty of profit potential for the next bull run.
If HT were to reach its all-time high again, it would have to grow by more than 1,000% from its current price. However, the token will most likely go beyond that price in the next bull run in 2025. This is because the price also went higher in the 2021 bull run than in the 2017 one.
One key factor that could affect HT’s performance in the next bull run is the Huobi exchange itself. If something were to happen to the exchange, it could negatively impact HT’s value. On the other hand, if Houbi continues to grow, it will make HT even more valuable.
Bottom Line: While 2023 may not have been a good year for HT so far, it may still be a hidden gem for the next bull run. Its potential for growth is still high, and holding HT offers numerous benefits. The only major risk for HT’s future value is the Huobi exchange itself. However, given the exchange’s strong reputation and position, this is unlikely. As always, it’s important to do your own research before investing in any cryptocurrency.
Is UNI Going to Make a Huge Move Soon?
Uniswap has been caught in a range for almost a year; however, that may be about to change!
What is UNI? Uniswap is a decentralized trading protocol that allows the automated trading of DeFi tokens. It was launched in 2018 but gained popularity in 2021 with the rise of DeFi. Uniswap aims to improve trading efficiency and liquidity by automating token trading and making it open to anyone who holds tokens. It created its own governance token, UNI, in September 2020.
UNI has been making waves in the cryptocurrency world since 2021. The token had a remarkable run, growing by almost 2,500% in only 180 days, but it suffered badly in 2022, losing 93% of its value. However, the token seems to be stuck in a range, and lately, it has been displaying less volatility, which could mean that it might start trending again in the future.
Uniswap and the Bollinger Bands
One technical indicator that can be used to analyze the current market condition is the Bollinger Bands. The Bollinger Bands consist of three lines: the upper band, the lower band, and the middle band. The middle band is a moving average, usually a 20 simple moving average, and the upper and lower bands are placed two standard deviations away from the middle band.
The Bollinger Bands can be used to determine the volatility in the market. When the bands contract, it means that the volatility in the market is reduced. Conversely, when the bands widen, it means that the volatility in the market is increasing.
As you can see on the chart, the Bollinger Bands lines have contracted, which means that the volatility in the market is reduced. This also means that the token may soon reverse its stance and make a strong move, probably to the upside, given the current market.
Bottom Line: In conclusion, Uniswap (UNI) has had a rollercoaster ride in 2021, but it showed resilience despite the bearish market conditions in 2022. The token has been displaying even less volatility lately, which could mean that it might start trending again in the future. The Bollinger Bands indicator suggests that the token may soon make a strong move, likely to the upside.
Crypto Trading 101: Is the OBV a Good Indicator For Trading BNB?
Let’s see if the OBV indicator is suitable to beat the market!
Trading with the OBV
The OBV is an indicator that combines price and volume to give insights into the momentum of a market. When the OBV line increases, it means that the volume is pushing the price up. A decrease in the line indicates that the price is losing momentum and likely to go down. Adding a moving average to the OBV can generate buy and sell signals, with an upward cross indicating a buy signal and a downward cross indicating a sell signal.
Due to the moving average we have added and how it generates signals through crossovers, the OBV acts as a trend-following indicator. As a result it works well when there is a clear trend. However, when the trend is not clear and the market is ranging, the OBV will send a lot of fake signals.
Best OBV Strategy for BNB
At Cryptohopper, we strive to bring you the best settings for each indicator, including the OBV, to help you make informed trading decisions. In our backtest from 2018–01–01 to 2023–04–13, we found that the following settings for the OBV worked best for trading BNB:
Chart period: 4 Hours
Period: 16
In this case, these settings brought returns of 3,280%, which is actually worse than the buy-and-hold strategy’s 3,410% returns. At least the maximum drawdown for this strategy is 64%, which is slightly less than the buy-and-hold strategy’s 83% drawdown.
Because the returns are worse than the buy and hold, and a lot worse than other strategies we showcased for BNB, the OBV is not optimal when combined with the moving average. So you won’t see this as a strategy on Cryptohopper.
Based on this test, we can conclude that not all indicators work as well on their own in the cryptocurrency market. Maybe the OBV could work well with another indicator like the Williams %R. However, further testing would be required.
Disclaimer: Past performance does not guarantee future success, as the way the market fluctuates can change at any time.
