It was only 10 days ago I was asking Is Capitulation at Hand? and we didn’t have to wait long to find out the answer. HIVE had a couple of truly shocking trading days this week dropping from 27 cents to just 20 in such a sharp move it couldn’t be described as anything other than Capitulation.
So the question is – What now? We’ve made a new low at 20 cents which is a nice round number and as good a spot as any to establish new Support. That part is kind of encouraging. For the last day or 2 it’s bounced around 21 cents and while there is some Trade Volume there, the initial bounce is fairly minimal. Often markets will put in a Dead Cat Bounce before heading lower, or they will rally sharply to signal a proper Trend Reversal.
Today the HIVE price has sharply jumped back up to 23 cents so maybe this is where the Bargain Hunters are starting to come back in. I personally think we might need to consolidate in the range of 20 to 25 cents for a month or so before investors will start to get confident that the Support at 20 cents will hold...so that’s what I’m calling for. Consolidation.
All up I think one of the reasons why this recent drop has been so devastating is that it’s NOT in the context of a broader move in the Crypto markets. Often HIVE gets washed around with Bitcoin and Ethereum and it follows the Big Dogs both UP and DOWN...but this one has been different.
I put it down to Lagging Sentiment and a Technical Chart Setup that indicated a sell off was due, but neither of these things tell me that HIVE is dead. To the contrary, Sentiment and Technical Indicators can turn around quickly with the right catalysts. I am cautiously optimistic that is what we will see next and if you have the stones for it this could yet turn out to be a great spot to buy. Long live HIVE!
DISCLAIMER - This is not financial advice