Hifi Finance Price Analysis: HIFI Drops 40% after reaching All time High

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Hifi Finance (HIFI) price has been on a tear in the past week, surging by more than 490% from its year-to-date low of $0.42 on September 9 to a new all-time high of $2.63 .

The token, which is part of the Polygon ecosystem, aims to enable borrowing and lending against tokenized assets such as real estate, crypto, and NFTs.

Hifi Finance Price Weekly Analysis

The weekly chart shows that Hifi Crypto price has broken out of a long-term downtrend that started in May, when the token reached its previous high of $1.38. The breakout was accompanied by a significant increase in volume, indicating strong buying pressure.

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The relative strength index (RSI) has also rose above 70, signaling that the token is overbought and could be due for a correction. However, the RSI can remain overbought for extended periods during strong uptrends, so it is not a reliable indicator of a reversal.

The due correction after a sharp rally has taken place in the crypto.

Hifi Finance Price Daily Chart

The daily chart shows that Hifi Finance price has been forming higher highs and higher lows since September 9, forming an ascending channel. The token has also been trading above the 50-day and 200-day simple moving averages (SMAs), which are bullish signs.

Hifi Finance Price Daily Chart

The price action of $HIFI after breaking out the Swing High level made out the impulsive movement where the price action have left out the Imbalance of FVG which can fill out through the correction period.

However, the token has also been showing signs of exhaustion, as it has failed to close above the upper boundary of the channel, despite reaching a new high. The RSI has also formed a bearish divergence with the price, as it has made a lower high while the price has made a higher high. This suggests that the bullish momentum is weakening and a pullback could be imminent.

A daily close below the lower boundary of the channel could confirm a bearish breakdown and trigger a deeper correction. The first target for the bears would be the 50-day SMA, which is currently at $1.20. The second target would be the 200-day SMA, which is currently at $0.80.

Hifi Finance Price Outlook

Hifi Finance price has been enjoying a parabolic rally in the past week, driven by several factors such as partnerships, short squeezes, and futures trading. However, the token is also showing signs of being overbought and overextended, and has faced a correction in price.

The bulls need to keep Hifi Finance price above the ascending channel and push it above $3.00 to maintain the uptrend and target higher levels. The bears need to break Hifi Finance price below the channel and drag it below $2.00 to initiate a reversal and target lower levels.

Hifi Finance News Roundup

Some of the latest news stories that could impact Hifi Finance price are:

  • HIFI price falls 40% after Binance opens Hifi Finance perpetual contract: Binance, one of the largest crypto exchanges in the world, has launched a perpetual contract for Hifi Finance (HIFI/USDT), with up to 25x leverage. This could increase the volatility and liquidity of the token, as well as attract more traders and speculators.
  • Hifi Finance token price surge triggers record short liquidations: The sharp rise in Hifi Finance price has caused massive losses for short-sellers, who have been forced to close their positions at a higher price. According to CoinGlass, more than $854k worth of short positions have been liquidated on September 16, which is the highest amount on record.
  • Hifi Finance partners with Crown Ribbon and Pooled NFT: Hifi Finance has announced two strategic partnerships in the past week, with Crown Ribbon and Pooled NFT. Crown Ribbon is a platform that aims to tokenize the performance horse industry, while Pooled NFT is a platform that allows users to turn any NFT into passive income. These partnerships could expand the use cases and adoption of Hifi Finance in the real world and the NFT space.

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Harsh Panghal
Harsh Panghal

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