Here’s why the Huobi Token price went parabolic and what next

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Huobi Token price went parabolic on Friday after Bloomberg reported that the company’s founder was seeking to sell majority of his stake. The HT price surged to a high of $5.90, which was the highest level since June 13th of this year. This price was about 35% above the lowest level this year, giving it a market cap of over $813 million.

Huobi to be sold?

Huobi Global is a leading blockchain exchange that was established by Leon Li, a Chinese entrepreneur. The company runs an exchange that processes over $1 billion worth of transactions on a daily basis. It has millions of customers and competes with the likes of Coinbase and Binance.

According to Bloomberg, Li is in talks to sell 60% of his stake in the company. Such a deal will value the entire company at over $3 billion. This means that Li will raise about $1 billion from the sale. It will be the biggest buyout in an industry that is facing significant pressure.

Sam Bankman-Fried’s FTX is one of the companies that could acquire Huobi. If a deal closes, it will give the company a leg-up in the vast Asian market. Bloomberg also said that Justin Sun is also a potential acquirer, a statement that he rejected. Further, it is unclear whether the company’s sale will involve that of Huobi Technology, a publicly traded company.

Like other popular crypto exchanges like OKX, FTX, and Gate.io, Huobi Global has its own token known as HT. The token works to incentivize people to use its platform. Still, a purchase of Huobi will not have an impact on the token. The token’s price action is usually dependent on the overall market action in the crypto industry.

Huobi Token price prediction

The daily chart shows that the HT price found a strong support at $4.3070 this year. It struggled to move below that level several times. Additionally, the coin lagged that of other cryptocurrencies during the recovery.

Huobi Token managed to move above the important resistance level at $4.92, which was the highest point on July 23rd. It also rose above the 25-day and 50-day moving averages. Therefore, while the acquisition rumours are positive for the coin, there is a likelihood that the price will drop and retest the support at $4.927.

The post Here’s why the Huobi Token price went parabolic and what next appeared first on CoinJournal.

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