Hashflow price readies for volatility as $44 million worth of HFT tokens flood markets in a cliff unlock
|- Hashflow price is up around 30% after finding support at $0.2097 on October 20.
- Imminent volatility seems likely for the altcoin, with 160.38 million HFT tokens worth approximately $44 million due to flood markets.
- HFT could drop 10% amid profit booking, before a potential correction north as investors buy the dip.
- Invalidation of the bearish outlook will occur if the altcoin breaks and closes above the $0.2923 resistance level.
Hashflow (HFT) price is up 30% since the cryptocurrency pivoted on the $0.2097 level for support, but its recovery rally may be in jeopardy because of a cliff token unlock event.
Hashflow tokens worth $44.32 million due to flood markets
Hashflow (HFT) price is likely to incur some volatility in the next few days as the network prepares for $44.01 million worth of unlocks. Based on the ecosystem’s token unlock schedule, 160.38 million HFT tokens are due to flood the markets in the cliff unlock. This constitutes approximately 16% of the token’s total supply.
Token allocations will go towards ecosystem development, the core team, community rewards, and early investors. The last three are likely to impact the market as recipients look to book early profits.
HFT token unlocks
Hashflow price outlook with 160.38 million HFT tokens flooding the market
Hashflow (HFT) price uptrend may display some volatility soon as the network readies for a cliff token event. With millions of HFT tokens about to flood the market, selling pressure is likely to increase as allocation recipients look to book profits.
The ensuing selling pressure could see Hashflow price rejected from the $0.2923 resistance level, potentially falling below the $0.2500 psychological level. In the dire case, the slump could extend for the cryptocurrency to test the demand zone extending from $0.2097 to $0.2275.
If the aforementioned order block fails to hold as a support, Hashflow price could slip through to test its floor at $0.2097. Such a move would constitute a 24% fall below current levels.
The Awesome Oscillator (AO) is still negative, suggesting an underlying bearish presence in the HFT market. This, coupled with the fact that the Relative Strength Index (RSI) is holding thinly above the 50 level, shows the bears could take over if bulls show weakness.
HFT/USDT 1-day chart
Hashflow on-chain metric to support anticipated volatility
Santiment data for the daily active addresses, showing the number of unique addresses involved in HFT transactions daily, has been increasing of late, indicating the daily level of crowd speculation, bolstering the anticipated volatility thesis.
In the same way, social dominance has soared as chatter about HFT and Hashflow price continue to increase on crypto-related social media because of the voluminous supply influx.
HFT Santiment: Social dominance, daily active addresses
On the flip side, if sidelined investors come in, Hashflow price could extend north, breaking past the 50-day Exponential Moving Average (EMA) at $0.2843 before confronting the $0.2923 supplier congestion level.
Higher, Hashflow price could extrapolate gains towards the 100-day EMA at $0.3130, with the move exposing it to the supply barrier extending from $0.3342 to $0.3535. A break and close above the mean threshold of this order block at $0.3435 would foreshadow it failing as a supply zone and being converted to a bullish breaker as HFT price extends to tag the 200-day EMA at $0.3613. Such a move would constitute a 30% leap above current levels.
On the same note, investors are showing readiness to take advantage of the token unlocks and its associated volatility. With a selling spree likely to precede an uptrend, traders could be poised to buy the dip. The increasing volume of active stablecoin deposits as well as the market capitalization for the Tether (USDT) stablecoin indicate this. It suggests intention to buy, a move that could trigger a correction after the potential dip.
HFT Santiment: Active stablecoin deposits, USDT market capitalization
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