Bears may Awake from Hibernation to Sell the Price of HEX Down
HEX has completed a 9-count up on the weekly chart using TD Sequential indicator. In fact, the price kept rising for several weeks afterwards. I hate to say this but bears may take advantage of this condition by dumping liquid HEX on the market.
This overbought condition could lead to a 9 week count down on the weekly chart.
It doesn't help that BTC and ETH have painted a massive head and shoulders pattern on their charts. All evidence suggests that crypto has entered a multi-year bear market.
Luckily, most of the liquidity for HEX (80%) is paired with USDC. Only 20% is tied to ETH. This means that HEX is mostly a decorrelated asset since it only experiences 1/5th the loss when ETH moves down in price.
Even though HEX is mostly a decorrelated asset, it still may be indirectly affected by the bearish sentiment that exists in the entire crypto market. Meaning, we may see fear-induced panic selling as people attempt to preserve their capital in USD terms.
HEX has also gone up 1,748.7X from all time low to all time high. So, one should expect that some early adopters will take profit. This will happen at all levels as the price moves up.
Bottom line, we may see blood in the streets even though HEX has the most beautiful chart in all of crypto.
On the other hand, we also have many bullish elements for the price of HEX.
For example:
1. Many hold HEX liquid and are ready to "sacrifice" for PULSE token.
2. Many will flock to HEX for insanely high yield (38% APY for long stakes)
3. Staked tokens cannot be dumped on the market since they are burned out of existence and emergency end stake penalties are severe
4. Controlling entity owns 95% of all HEX in circulation in dormant addresses that NEVER sell so the price is protected
5. Whales defend certain price levels with limit orders and inject fresh capital into the market when needed
6. Many are converting other assets into HEX to maximize the USD value of their "sacrifice"
Let's observe how this WAR unfolds between bears and bulls.
This overbought condition could lead to a 9 week count down on the weekly chart.
It doesn't help that BTC and ETH have painted a massive head and shoulders pattern on their charts. All evidence suggests that crypto has entered a multi-year bear market.
Luckily, most of the liquidity for HEX (80%) is paired with USDC. Only 20% is tied to ETH. This means that HEX is mostly a decorrelated asset since it only experiences 1/5th the loss when ETH moves down in price.
Even though HEX is mostly a decorrelated asset, it still may be indirectly affected by the bearish sentiment that exists in the entire crypto market. Meaning, we may see fear-induced panic selling as people attempt to preserve their capital in USD terms.
HEX has also gone up 1,748.7X from all time low to all time high. So, one should expect that some early adopters will take profit. This will happen at all levels as the price moves up.
Bottom line, we may see blood in the streets even though HEX has the most beautiful chart in all of crypto.
On the other hand, we also have many bullish elements for the price of HEX.
For example:
1. Many hold HEX liquid and are ready to "sacrifice" for PULSE token.
2. Many will flock to HEX for insanely high yield (38% APY for long stakes)
3. Staked tokens cannot be dumped on the market since they are burned out of existence and emergency end stake penalties are severe
4. Controlling entity owns 95% of all HEX in circulation in dormant addresses that NEVER sell so the price is protected
5. Whales defend certain price levels with limit orders and inject fresh capital into the market when needed
6. Many are converting other assets into HEX to maximize the USD value of their "sacrifice"
Let's observe how this WAR unfolds between bears and bulls.
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