Holo isn’t your everyday blockchain but a distributed ecosystem that fosters hosting support for decentralized applications built using its in-house Holochain. Holochain is a framework that allows the development of decentralized applications without relying on a blockchain.
Its goal is simply to function as a bridge between the internet and applications built using Holochain. These applications are hosted by HOLO network participants, which host their applications on the internet in exchange for some fees. Initially, the HOLO network worked with a token named HoloFuel, which was used as an accounting system to pay network participants for their hosting services.
This method not only served as a worry-free method of app hosting but aided in generating income for hosting partners and savings for dApps developers. In 2018, the developers instigated a new idea to mint an ERC-20 token named HOT to redeem the HoloFuel tokens in a 1:1 ratio.
HOT will remain on exchanges even after the swap is successful. Holochain developers are still working on the development of HOLO tokenomics. Holochain holds 93rd rank with a market capitalization close to $790,469,086. Liquidity on HOLO has hit close to 95% of its total supply.
The HOT token has been around since 2018, but the price trend remained consolidative with significantly less movement till 2021. After the initial few months of 2021, the HOT token suddenly spiked, marking an upward movement. Despite falling by more than 70%, it is still in an upward trend with a total momentum of above 400% since the lows of January 2021.
On daily charts, the price action from its recent peaks of November 2021 to current levels in March 2022 has mostly been negative, with some consolidation seen on historic support levels. The purple line indicates the levels HOT token retraced to new highs after falling in mid-2021.
On the 200 Days Moving average, it can be easily witnessed that HOT is on a downtrend movement. But the 50-day moving average shows a positive buying trend that can also be confirmed by the RSI curve that has now passed 54.
Since the last rejection from the 50 DMA curve in Feb 2022, we are now witnessing another attempt to breach this level, with much stronger momentum. Volumetric transactions have remained the same throughout 2021.
As per the HOT coin price prediction, there is a higher probability of failure over the long-term price action, or quite simply, the buzz around Holochain has died down. Under both conditions, HOT no longer remains a positive coin for investment in the coming years.
Instead, taking a step away from evolving blockchain would have affected the price sentiment. While the trend line has improved a bit, the outlook over the short term is much more lucrative. For HOT to become a trending token, it needs to breach $0.01 in the coming months. RSI remains under similar levels as witnessed before the value rise in 2021.
