On the 9th of December, HEX/USD was trading slightly above 11 cents per coin, when a sudden and strong movement higher began to unfold. As January gets ready to begin HEX/USD finds itself trading slightly below 27 cents, which is a sizeable gain compared to the 11 cents mark three weeks ago. However, as recently as yesterday, yes the 30th of December, HEX/USD was near a high of 35 cents. Vast volatility has likely caused a profound amount of emotions for speculators who are able to trade Hex.
HEX/USD is only ranked as the 201st cryptocurrency regarding market capitalization with slightly less than a 50 billion USD value. The fact that HEX/USD is trading more than double its value today compared to what it was only three weeks ago is startling. Remember, trading volumes in HEX/USD remain rather light and not very transparent, because it isn’t readily available on many cryptocurrency exchanges. And when it's being traded it sometimes needs USD converted into a ‘stable coin’ to allow the speculative position and purchases to transact.
Perhaps another important reminder is that volatility within HEX/USD been experienced before. On the 19th of September, HEX/USD was actually trading above 50 cents per token. And intriguingly, the fall from those apex highs took place over the past handful of months incrementally and saw its low on December the 9th, yes, the day in which trading seemed to turn around for the cryptocurrency as it soared until yesterday’s mid-term highs were achieved. The selloff after yesterday’s highs certainly prepared speculators who are looking for more volatility as the New Year gets ready to begin.
Another aspect of the trading within HEX/USD is its rather uncorrelated price compared to some of the major cryptocurrencies. Hex runs on the Ethereum blockchain, so if a technical trader is going to look for a relationship with a major cryptocurrency perhaps ETH/USD can be a useful guide. But does it really mean anything? That depends of the perception of the speculator making their wagers technically.
The highs made in HEX/USD the past couple of days challenged values not seen since the middle of October. And the question now for Hex is if it can maintain its value over the 27 cents juncture. This could prove to be important because current value of HEX/USD is near support seen in the middle of November. The mid-term price range, if sustained, could be interpreted as a bullish signal by some traders.
However, the broad cryptocurrency market has been showing nervousness the past week. And the results from HEX/USD have gone against the trend. Skeptics might look at HEX/USD and determine its rise in price was overdone and that a reversal lower could be in the cards.
Hex Outlook for January
Speculative price range for HEX/USD is between 0.1019000000 and 0.4040000000 cents.
If HEX/USD falls below the 27 cents level and begins to test the 25 cents mark, more volatility could rapidly be displayed. HEX/USD is a speculative cryptocurrency and remains capable of producing volatility which is hard to explain because of a lack of transparency. If HEX/USD were to fall below the 25 cents level, suspicious traders could target lower marks. Speculators need to use entry level price orders with HEX/USD to make sure their fills are not at the mercy of sudden spikes.
When trading HEX/USD it is vital to use all risk management tactics. Value changes of triple are not what every trader plans on participating with even within speculative assets such as cryptocurrencies. The ability of HEX/USD to go from 11 to 35 cents within a few weeks of trading should be a sign that caution is needed. Resistance above may be the 30 cents level temporarily. The fact that HEX/USD was trading at 35 cents only yesterday is an indication this level could be challenged again. However there are no guarantees and traders should use take profit orders to cash out winning positions when they are able to pocket their profits. January is likely to remain extremely volatile for HEX/USD considering its price action the past three weeks of trading. Traders need to be careful.
