Hifi Finance hit an all-time high of $2.61 over the weekend. However, the altcoin saw a sharp decline after this. The altcoin’s decline was most likely attributed to Binance’s introduction of the HIFI perpetual contract and Korean trading habits. Analyst Danielle du Toit points to a critical level for the altcoin to drop to $0.3.
The altcoin price, which went on a rally over the weekend, crashed!
As you follow from Kriptokoin.com, the native token of Hifi Finance, an Ethereum-based lending and tokenization protocol, became the center of attention of a large portion of crypto investors during a busy weekend. HIFI reached an all-time high of $2.61 on September 16. However, it later went into decline. The altcoin fell sharply to $0.8376 at the time of writing.
HIFI 7 Day Chart. Source: CoinMarketCapThe sharp price movement for Hifi is largely linked to the flurry of listings on cryptocurrency exchanges. BitMart listed Hifi on September 14, while Poloniex took the same step two days later. Both exchange listings coincide with an uptrend for the altcoin. Meanwhile, on September 16, Binance launched Hifi perpetual contracts. After this, the asset entered a sharp downtrend. Because traders had the opportunity to short HIFI up to 20 times.
Meanwhile, on September 17, HTX (formerly Huobi) also made a listing. However, this move was not enough to cause a market reversal for Hifi. According to CoinMarketCap, altcoin trading volume dropped 67% to $298 million in the last 24 hours. Additionally, its market cap dropped 18.17% to $79 million over the same period. The market value of Hifi, which reached its peak at the weekend, was around 250 million dollars before the rally.
HIFI price prediction: Diving is possible for $0.3!
Crypto analyst Danielle du Toit evaluates HIFI’s technical picture. From a technical perspective, HIFI’s price was hovering above the key support level of $0.8075 at press time. A break below this point would leave the 50-day EMA line at $0.6076. It will also be the last line of defense to prevent the altcoin price from retesting the next key support level at $0.4790. This combined with the 200-day EMA line.
Daily chart for HIFI. Source: TradingViewJust a daily close below this level will open the door to the $0.3 price point. Going forward, it is possible that an extreme bearish scenario could lead to HIFI losing this support level. It is worth noting that HIFI was positioned above this mark for most of its existence and only briefly fell below this support to reach a low of $0.0530 on June 20, 2023. Since then, the altcoin has been trading above $0.3. As a result, it is possible that a break below this support in the short term could cause HIFI to hit a new all-time low below the previous low of $0.0530.
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