At press time, Huobi Token surged 20% to register its best performance in over two months
The daily active addresses for the token jumped 20% from the previous day
Popular cryptocurrency exchange Huobi Global will apply for a trading license in Hong Kong, the exchange’s advisor, Justin Sun, announced on Twitter on 20 February.
Big news for crypto today: @HuobiGlobal has announced that it’s applying for a crypto trading license in Hong Kong🇭🇰! This is a major step for the major cryptocurrency exchange and a sign of its continued commitment to operating in a compliant and regulated manner. 🇨🇳
— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) February 20, 2023
Read Houbi Token’s [HT] Price Prediction 2023-24
Sun added that Huobi will also launch a new exchange, named Huobi Hong Kong, which will adhere to local regulatory laws and target institutional investors from Hong Kong and other Asian markets.
Huobi Token [HT] responded to this development enthusiastically as its price jumped nearly 20% to hit $6.19 at the time of writing this article, per data from CoinMarketCap.
Huobi’s change of fortunes?
The news comes following Hong Kong’s new plan to allow retail investors to trade popular crypto currencies like Bitcoin [BTC] and Ethereum [ETH]. Additionally, the Securities and Futures Commission (SFC) of Hong Kong released new guidelines for crypto trading platforms looking to apply for a license under the new regime.
The pro-crypto policy is part of Hong Kong’s ambitious attempt to establish itself as a global crypto trading hub.
As for Huobi Global, it hoped that the latest move would help it shrug off the pessimism engulfing the exchange. Last month, it was at the receiving end of a mass layoff speculation that created doubts over the financial health of the trading platform.
Network activity explodes
Grappling with severe selling pressure in the past few weeks, Huobi Token was reinvigorated by the latest development. It broke past the resistance at $6.1 for the first time in two months. Indicators like Relative Strength Index (RSI) and Awesome Oscillator (AO) gave overwhelming bullish signals.
However, it remained to be seen whether the price would hold on to the gains in the short term.
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HT’s on-chain activity picked up remarkably. The daily active addresses for the token spiked 75% from 17 February while the velocity moved in an ascending trajectory as well.
The network growth registered a sharp increase, indicating that new users flocked towards the token in bulk. HT holders could thus hope for another macroeconomic trigger to push the price further up.