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  • Cryptocurrency trading platform Huobi launches proprietary blockchain in a test mode.
  • HTT/USD zig-zagged on the announcement and settled below $5.00.

Cryptocurrency exchange Huobi launched the testnet of its own blockchain, Huobi Chain. Huobi Token (HT) will be used as a utility token of the blockchain, which will be focused on providing decentralized finance (DeFi). 

Apart from that, Huobi Chain will support high-performance smart contracts on various programming languages and sidechains. Also, the blockchain will allow for interoperability with other digital assets, including Bitcoin,  Ethereum, HBTC, HUSD among others.

The news boosted HT price. The token peaked at $5.45 after the announcement ad retreated to $4.62 by the time of writing. Huobi Token is the 16th largest digital asset according to  CoinMarketCap ranks with the current market value of $1.05 billion. An average daily trading volume has retreated to $540 million from $1.3 billion registered on Saturday, February 27, following the announcement.

HTT/USD: Technical picture

While HTT/USD has recovered from the intraday low of $4.53, it is still down 5% on a day-to-day basis. The further upside may be limited by psychological $5.00 and the upper line of the daily Bollinger Band at $5.17. Once it is out of the way, the upside is likely to gain traction with the next focus on the recent high of $5.45. 

On the downside, the sell-off below $4.53 will open up the way towards the lower line of the daily Bollinger Band at $4.20, followed by $4.00. However, a stronger support is created by a combination of SMA50 daily and the lowest level since February 28 at $3.80. This area is likely to slo down the bears and create a pre-condition for a rebound.

HTT/USD daily chart