Key Takeaways
- China’s new crackdown on cryptocurrencies has wreaked havoc out there.
- Almost every single digital asset has suffered significant losses.
- Huobi and OKEx’s tokens rank among the many largest losers within the current flash crash.
The utility tokens of cryptocurrency exchanges Huobi and OKEx have fallen significantly following China’s latest crackdown notice.
China Shakes the Crypto Market
The Folks’s Financial institution of China (PBOC) has strengthened its crackdown on cryptocurrencies, sending buyers into worry.
In the past few hours, more than $1.35 billion has been wiped out from the entire crypto market capitalization. The sudden sell-off generated practically $450 million in liquidations value of lengthy and quick positions throughout the board.
Almost every single digital asset in the crypto space has suffered from the crash. Even the stablecoins USDT and USDC briefly dropped by roughly 0.20% from their $1 peg.
The Huobi and OKEx’s tokens have taken the biggest hit from China’s latest crackdown, given their strong roots in the nation where they were founded. These digital property noticed their market valuation plunge by greater than 22% inside a couple of minutes and now stand on weak assist.
HT and OKB Crash in Tandem
The Fibonacci retracement indicator, measured from the Jul. 20 low of $7.40 to the Sep. 6 high of $17.70, reveals that Huobi Token sits on thin ice. The current sell-off has pushed its worth beneath the sturdy foothold at $11.30, and now the final line of protection for the bulls sits at $9.60.
A candlestick close above this support level may relieve some of the selling pressure seen recently, leading to a rebound toward $11.30. But when bears handle to achieve management of HT, triggering an in depth beneath $9.60, then a downswing to $7.40 appears imminent.
OKB also slid through a significant support level at $15.42 due to the recent flash crash. Now, this utility token doesn’t have any demand obstacles beneath it that may forestall it from dropping towards $12.80.
Given the lack of support for OKB, it must keep trading above $12.80 so that a rebound to $15.42 can occur. Failing to carry above this vital assist degree may generate panic amongst merchants, encouraging them to promote. Under such unique circumstances, OKB could fall to $9.50.
Though a few of the most famous analysts within the cryptocurrency trade believe that the market will take up the current spike in downward strain, it’s essential to pay shut consideration to the assist ranges beforehand talked about. A daily close below $9.60 for HT and $12.80 for OKB could result in a steeper correction.
