HODL (HODL) Crypto Price Prediction: Can BNB Chain’s Presence in DeFi Stir Gains for HODL?

HODL [HODL], a token based on BNB Chain, has gained by 11% in 24 hours and was trading at $0.000289, at press time.

HODL [HODL], a token on the BNB Chain, noted 11% gains over the last 24 hours and was trading at $0.000289 at press time. During this period, the altcoin’s trading volumes surged by 7% to reach $677,000.

According to data from decentralized exchange (DEX) platform GeckoTerminal, HODL had a market capitalization of $2.7 million. Meanwhile, CoinMarketCap data showed that the token had a self-reported circulating supply of 725 trillion, placing it in the low-cap altcoin category.

Being a new coin with only 18,000 holders, HODL is susceptible to volatile price movements in the event of any sudden spikes in trading volumes. For example, after hitting an all-time high of $0.001022 on 13 December, it has since declined by over 200%.

HODL crypto price analysis

A glance at HODL’s one-hour chart showed bearish trends in the lower timeframes. The Relative Strength Index (RSI) was at 44, indicating more selling activity than buying activity.

This selling pressure could be attributed to traders profit-taking from buying during the rally.

Source: GeckoTerminal

The Awesome Oscillator (AO) indicator also highlighted the bearish thesis with the AO histogram bars in the negative region.

If these bearish trends continue, HODL could drop further, erasing the recent gains.

Can BNB Chain’s DeFi presence drive gains for HODL?

HODL aims to provide DeFi products on the BNB Chain, which is the fifth-largest blockchain by Total Value Locked (TVL).

While this could drive some gains for HODL, it will need to attract usage and compete with the other DeFi protocols operating on the BNB Chain.

However, the DeFi industry has been one of the best-performing sectors over the last two months, which could benefit HODL.

Will HODL continue its gains?

After hitting an all-time high four days ago, HODL has since plunged by over 200% as traders rush to book profits, driving the downtrend. These price movements are common with new tokens, where small changes in trading volumes can drastically alter the price.

Buying activity around HODL has decreased, causing the rally to stall. If sellers remain dominant, it could accelerate the downtrend and drive the price down further. Conversely, increased buying activity could drive gains.