A turn around?
Back in June it didn't look pretty. Hive's price was making new lower lows every week and the debt ratio was climbing as a result. We had and still have a Hive support price in the 3-4 cent price level range and we were getting very close to breaking it. A year ago or so, it seemed preposterous for Hive to ever head this low, but this year we found out that it really could fall this low...
However, just some weeks later it seems that we may have finally reached the bottom. Since then, price has increased by around 55% and the chart looks like we are in a macro trend reversal. This of course had a very favorable effect on Hive's debt ratio. From almost 30% we are now back down to almost 21%. A steep and quick reversal. Going over 30% would have triggered the hard limit of the hair cut rule. This is something to be avoided since HBD would then most likely depeg from Hive valued at $1. In other words, a collapse of HBD and therefore Hive's tokenmics as a whole. Amazingly, this hasn't happened since Hive's hardfork from Steem. But it's clear that we came very very close to it!
Going back under 20% means that users will once again receive HBD in their post rewards (if they choose to) and Hive can also be converted to HBD again.
While we are not out of the woods so to speak, the chart does look pretty good. We can see that we have now had several weeks of green candles with good volume. If this trend lasts, I think we could soon be back to around 20 cents again.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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