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Protocol Haven (XHV) shows strong signs of bottoming after 90% crash

Haven Protocol (XHV) showed signs of returning to bullish form as its price doubled in just five trading days.

What is the Haven protocol pumping?

The price of XHV jumped as much as 107% from last week to above $3.60 on March 11, the highest level in more than three months. Interestingly, the upward move followed strong sell-off period that has seen the value of XHV drop from nearly $20 in November 2021 to as low as $1.60 in early February 2022 – a drop of around 90%.

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XHV/USD weekly price chart. Source: TradingView

Traders begin to return to the Haven Protocol market on the prospect of two macroeconomic scenarios: US President Joe Biden’s Executive Order focus on crypto and hard line Western sanctions against Russian oligarchs amid escalating military tensions between Ukraine and Russia.

In the order titled “Ensure the Responsible Development of Digital Assets,” President Biden Command federal agencies to submit reports on cryptocurrencies and consider introducing new regulations for the field.

Meanwhile, the Western powers decided exclude Russia from the global banking system Swift while imposing targeted sanctions on some of the country’s wealthiest individuals.

Cryptocurrency investors are pricing in the impact of these two updates, which decide to increase the price of privacy-promoting digital assets that promise to secure financial transactions from regulators according to regulations.

Thus, Monero (XMR), Kyber Network (KNC), Tornado Cash (TORN) and other privacy coins outperforming the cryptocurrency market massively this week.

The Haven protocol, a fork of the Monero blockchain that promotes itself as a “foreign bank”, seems to have a similar view.

Fractal proposes more benefits for XHV

The recent buying in the Haven Protocol market may also have occurred due to a multi-month technical support level.

Related: FBI Director: Russia Overestimates Ability to Bypass US Sanctions Using Cryptocurrencies

The price of XHV bounced back after failing to close below descending channel support on multiple attempts, as shown in the chart below.

Notably, the token’s last 90% drop to the same floor price in 2021 resulted in a sharp upward retracement from around $2.50 in June to around $20 in November.

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XHV/USD weekly price chart has a descending channel. Source: TradingView

The price of XHV suggests a similar bullish rally, extending after the most recent rally. In doing so, the Haven Protocol token could retest the resistance trendline of the descending channel setup – around $10.

Conversely, there is a risk of a pullback falling below the previous support lines of XHV in the $1.00–1.50 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move is risky, you should do your own research when making your decision.