Is HEX about to pull a GAMESTOP?!

February 6 2023 Written by AXiS ALiVE

HEX TRADING HAS A 95% TRANSPARENCY RATING

In order to have a strong grasp of what makes the HEX market move, one must understand the concepts of liquidity, market making, and trading psychology. In the case of true DeFi coins like HEX, almost all of the coins are traded on the blockchain. This image from crypto statistics website nomics.com shows how 95% of all trades in HEX are executed on the Ethereum chain and are traded directly with another cryptocurrency. This is important because buying and selling actual real cryptocurrency coins with real activity is what drives the price. This is different from Bitcoin and Ethereum which are traded on centralized exchanges using centralized order books and "paper traded" leverage products. When people use Centralized Exchanges (CEX) they are giving away custody of their assets to a centralized middleman. This is bad for security and bad for price because it opens up the doors to price manipulation and liquidation events where users can lose all of their money.

In the land of HEX, liquidity is one of if not the most important driver of price. For example, if there are 100 HEX coins in the pool and someone takes 50 coins out of the pool, then the price effectively doubles. In a Centralized exchange, no one knows how many coins are on the back-end and so it is not verifiable whether the trades and price movements are legitimate or not.

HEX TECHNICAL ANALYSIS 72 HOUR UPDATE

Over the past three days, HEX Price has surged 100%. You can see in the image below how price reacted on the successful break of the 500 Day Resistance Line. This move was predicted and called for in my most recent CHIPPENDALE'S TA SESSION as well as a twitter post on HEX BULLISH DIVERGENCE on January 25th as well as my pride and joy Chart Sets.

HEX on the 4 HOUR Chart is now sitting cleanly above the 3.5 Cent Support level and is now tracking the 2021 Bullish Fractal that took price all the way to 10 cents per hex. I would be very careful not to get left behind in this environment where the overall #crypto markets are threatening to move higher for maximum pain on overly bearish sentiment.

HEX LIQUIDITY IS GETTING RARER

HEX Liquidity is getting extremely low. You can see in the chart below how the amount of ETHEREUM and USDC in the pools has gone up in a parabolic way while the amount of HEX in the pools has been rapidly depleted. As of time of writing, there are approximately 119 Million HEX in the most dominant pools. During the Breakout, I witnessed less than 10 million HEX in the pools for a brief period of time. When levels get this low, the price has no where to go because big buyers are not willing to incur slippage on their purchases.

I speculate that this lack of liquidity above 5 cents is what spooked the big buyers of that rally to sell their newly acquired HEX back into the pools to secure profit and allow new players to accumulate a new range without incurring as much slippage on their buys.

This is great because the breakout levels are now being supported by the increasing demand of HEX buyers. There are consistently more buyers than sellers on a daily basis.

The market is setting the floor and preparing for an epic price launch past the 10 cent level.

HEX GOD WHALE ENDSTAKE DUE FEB 14

So this leads me to the massive HEX Stake that is coming to maturity on February 14th. The God Whale will have fourteen days to end that stake without accumulating penalties. When he does this, the Share Rate is estimated to increase by over 600 HEX per Tshare which has a dollar value of roughly $30 per Tshare at 3.8 cent HEX. God Whale has no market history of selling HEX after an end stake or hurting price. This is all verifiable on the blockchain and this is a very bullish event.

The continued ratcheting effect of moving share rate higher every 45 days would start to reduce the effective share rates for stakers who enjoy re-staking their own bags for shorter time frames. If the God Whale and other large players were to continue this ratcheting of share rate for the next 365 days, the share rate would increase by a minimum of 6500 HEX over the next year as outlined by Krypto Koolaid in our recent episode of PURE ALPHA.

The overall impact of this cannot be ignored. If HEX price were to stay flat at 4.2 cents for the entire year, Tshares would increase in USD denominated price by +27%.

See the graphic above to understand the power of the compounding of the share rate on every HEX price doubling after that.

This leads me to my final point...

LOW FLOAT STOCKS

What Is Floating Stock?

Floating stock is the number of shares, or coins, available for trading of a particular stock. Low float stocks are those with a low number of shares or in this case, on-chain liquidity. Floating stock is calculated by subtracting closely-held shares and restricted stock from a firm’s total outstanding shares (Origin Address + Staked HEX).

Closely-held shares are those owned by insiders, major shareholders (OA + God Whale), and employees (users). Restricted stock refers to insider shares that cannot be traded because of a temporary restriction, such as the lock-up period after an initial public offering or in this case (time-locked HEX).

Liquidity Structure is the only thing that matters in the coming weeks of propelling HEX prices higher. As the amount of HEX coins available for sale continues to drop below 40 million, buyers will enter into a frenzy to obtain as much as they can at any price. Factor in any PulseChain announcement or good fundamental news event, or a run-up in Ethereum and Bitcoin and the stage is set for a price move that will blow everyone's minds.

Is HEX about to go through a massive growth period?

Is HEX about to pull a GameStop?!

Cheers!

-AXiS ALiVE