TLDR Huobi Token (HT) fell 41.65% over the last 24h, sharply underperforming the broader crypto market (+3.98%). Here are the main factors:
- Exchange delisting fallout – Gate’s May 2025 HT-chain token delisting eroded liquidity and confidence (Gate notice).
- Technical correction – Overbought RSI (71.91) triggered profit-taking after a 131% weekly rally.
- Market divergence – HT’s plunge contrasts with rising altcoin season momentum (+16% monthly).
Deep Dive
1. Exchange Delisting Impact (Bearish)
Overview: Gate’s April 2025 delisting of 25 HT-chain tokens disrupted ecosystem liquidity, with withdrawal services ending June 1. This stranded assets and weakened confidence in HT’s utility as a chain native token.
What this means: Reduced trading activity and forced sell-offs from stranded tokens likely accelerated HT’s decline. The delisting also signals regulatory or compliance risks for HT-linked projects, deterring new capital.
What to look out for: Additional exchange scrutiny of HT-chain tokens, which could prolong liquidity drains.
2. Technical Reversal Signals (Bearish)
Overview: HT’s 7-day RSI hit 71.91 (overbought) before the drop, while its price sat 53% above the 30-day moving average ($0.334). Historically, such divergences often precede corrections.
What this means: Traders likely locked in profits after HT’s 131% weekly surge, amplified by stop-loss triggers near the $0.70–$0.75 zone. The MACD histogram’s declining momentum (+0.0496) confirmed weakening bullish pressure.
Key threshold: A close below $0.65 (Fibonacci 23.6% retracement) could signal further downside.
3. Altcoin Market Divergence (Mixed)
Overview: While HT plunged, the altcoin season index rose 16% monthly, suggesting capital rotated toward other tokens.
What this means: HT’s decline appears coin-specific rather than sector-wide. Investors may be pivoting to newer ecosystem tokens (e.g., Arena-Z’s A2Z launch on July 28) over legacy exchange tokens.
Conclusion
HT’s drop reflects a liquidity crisis from Gate’s delisting, profit-taking after unsustainable gains, and shifting altcoin demand. While technicals hint at oversold conditions (24h RSI: 34), weak fundamentals limit near-term recovery potential.
Key watch: Can HT stabilize above its 200-day EMA ($0.278) to avoid a full retracement of July’s rally?