Today was a good day for the financial markets as all the markets pumped together. We saw that Bitcoin pumped by almost 14 percent and along with that almost all the altcoins also had a very good rally.
On the 4 hour timeframe if I check HIVE it has moved only around 11% which is a good rally for the day. Whereas if I look at other altcoins many of them have moved almost two times more than HIVE.
I always notice this thing. During a bullish moment HIVE’s movement is usually smaller compared to other coins. But during a bearish moment HIVE usually moves the same amount or sometimes even more.
One of the biggest reasons is that HIVE is not a famous and globally recognized coin that attracts a lot of peoples interest and investment. There are only specific people, whales and investors who come in and pump the price.
Another reason is that the volume of HIVE is very low. Compared to other altcoins HIVE’s trading volume is much lower. This is also one of the reasons why HIVE’s performance is slower.
Well it is not necessarily like that. But it is important to understand one thing. If whales start buying HIVE heavily the volume increases and more people start noticing HIVE as a coin whose price is relatively low they may think that there is an opportunity to buy the coin and join the rally.
For that to happen the volume should increase. With every increase in volume the speed of the move can become higher.
That is why I consider HIVE an unexpected movement coin. If other altcoins start moving faster than HIVE there is a possibility that HIVE could suddenly have a very strong pump one day.
And if people hold their positions that rally could continue.
But if they do not hold then we may see what has happened in the past with HIVE. It can have a good rally and then quickly cool down and return toward its base level.
For HIVE it is not necessary to pump every time. What is important is that it holds its momentum and there should not be too many sellers.
I hope that Bitcoin starts a rally and brings a good bullish momentum to the altcoins as well.
What do you think? Can HIVE perform very well this time and touch the $0.06 mark?
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IMAGE TAKEN FROM CANVA SPLINTERLANDS
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