- At press time, HIFI was worth $0.8564 after its price slipped by more than 32% in one day.
- The altcoin’s drop was likely attributed to Binance’s introduction of the HIFI perpetual contract and Korean trading habits.
- HIFI will have to close today above $0.8075 to prevent further price drops to as low as $0.3.
The price of Hifi Finance (HIFI) experienced a significant decline following an impressive seven-day surge. The notable increase in HIFI value was directly tied to the substantial surge in trading volume the asset witnessed on the Upbit exchange in Korea.
On Saturday, Upbit Korea played a significant role, contributing approximately 65% of the total trading activity for the asset. Nevertheless, the price has experienced a steep decline of approximately 32% within the past 24 hours. This drop can be attributed to Binance’s introduction of the HIFI perpetual contract.
It is also important to keep in mind that Korean traders have previously been linked to engaging in pump-and-dump behaviors. CryptoQuant CEO Ki Young Ju acknowledged in an X post published in 2021 that Korean traders tend to exhibit a preference for pumping and subsequently dumping altcoins.
Fun Fact 2. It happens because South Korea has very strict capital controls, blocking arbitrage opportunities between global exchanges. Korean gov't is going to make this problem even worse with the travel rule solution, which makes Korean exchanges even more isolated. pic.twitter.com/d36WaQQKkl— Ki Young Ju (@ki_young_ju) December 22, 2021
According to CoinMarketCap, HIFI’s price slipped by 32.27% over the past day of trading, which left the altcoin trading hands at $0.8564. The cryptocurrency’s weekly performance was, however, still firmly set in the green at +48.54%.
Daily chart for HIFI/USDT (Source: TradingView)
From a technical perspective, HIFI’s price was resting on the key support level at $0.8075 at press time. A break below this point will leave the 50-day EMA line at $0.6076 as the last line of defense preventing HIFI’s price from retesting the next key support level at $0.4790, which was also confluent with the 200-day EMA line.
A daily close below this level will leave just the $0.3 price point. Thereafter, an extremely bearish scenario could lead to HIFI losing this support level. It is important to note that HIFI had been positioned above this mark for the majority of its existence and only broke below this support for a brief period to reach a low of $0.0530 on 20 June 2023.
Since then, HIFI recovered to trade above $0.3. Consequently, a break below this support in the short term may lead to the cryptocurrency establishing a new all-time low below the previous low of $0.0530.
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