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- HODL crypto is up over 11% in 24 hours amid a slight spike in trading volumes
- The low-cap altcoin’s market cap has also surpassed $2.7 million
HODL [HODL]a token based on BNB Chain, has risen 11% in 24 hours and was trading at $0.000289 at the time of writing. During this time, the altcoin’s trading volumes increased by 7% to $677,000.
Decentralized Exchange Platform (DEX) data. GeckoTerminal shows that HODL has a market cap of $2.7 million. On the other hand, CoinMarketCap Data shows that the token has a self-reported circulating supply of 725 trillion, putting it among the low-cap altcoins.
HODL is a fairly new coin with only 18,000 holders. This makes it susceptible to volatile price movements when sudden spikes in trading volumes occur. For example, after reaching an all-time high of $0.001022 on December 13, the price has fallen more than 200% since then.
HODL crypto price analysis
The one-hour chart of HODL indicates bearish trends in the lower time frames. The Relative Strength Index (RSI) stood at 44, indicating more selling than buying activity.
This selling pressure could be due to profit taking by traders who bought during the rally.
Source: GeckoTerminal
The Awesome Oscillator (AO) indicator also highlighted the bearish thesis due to the AO histogram bars being in the negative region.
If these bearish trends prevail, HODL could plunge lower and erase recent gains.
Can BNB Chain’s presence in DeFi generate profits for HODL?
HODL aims to offer DeFi products on the BNB Chain, which is the fifth largest blockchain according to Total Value Locked (TVL).
While this could generate some profit for HODL, it will need to pick up usage and become competitive with the other DeFi protocols running on the BNB Chain.
However, the DeFi industry has been among the best performing sectors over the past two months, which could bode well for HODL.
Will HODL maintain its profits?
After hitting an all-time high four days ago, the HODL has since fallen more than 200% as traders rush to book profits, fueling the downtrend. These price fluctuations are typical for new tokens, where small changes in trading volumes can significantly affect price changes.
Buying activity around HODL has weakened, bringing the rally to a halt. If sellers remain dominant, this could accelerate the downtrend and cause the price to fall further. Conversely, increased buying activity could fuel profits.