HBAR Soars 20% on New Partnerships and Rumors of an Upcoming ETF!

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The price of HBAR surged by 20% due to a fresh collaboration in the digital tokenization sector for Real-World Assets (RWA) and whispers of a future HBAR Exchange-Traded Fund (ETF).

On January 17th, Hedera (HBAR) experienced a continuous four-day surge, reaching a peak of $0.399 – a level not seen in over 38 months. For a brief moment, its market capitalization exceeded that of Stellar Lumens (XLM), before settling at approximately $14.5 billion by the time of publication.

In the past day, HBAR’s price increase was mirrored by an uptick in trading activity and interest among investors. This surge is evidenced by a doubling of its trading volume to over $2.65 billion and a 25% jump in futures market open interest, reaching approximately $562.46 million.

As an analyst, I’ve observed several factors that have ignited HBAR’s surge, and I believe these catalysts may continue driving its growth in the upcoming weeks.

Initially, it’s worth noting that the project is broadening its influence in the realm of RWA tokenization, a fact underscored by its recent collaboration with the World Gemological Institute, a renowned gemstone certification authority, and Vaultik, a cutting-edge Web3 financial technology company. Together, they aim to tokenize approximately $3 billion in diamonds and other luxury items on the Hedera blockchain platform.

Additionally, HBAR gained traction due to anticipation surrounding the potential approval of a direct HBAR exchange-traded fund by the U.S. Securities and Exchange Commission during the incoming Trump presidency.

Significantly, the fund manager Canary has submitted an application for an ETF centered on HBAR, and certain experts predict that this proposal may be more likely to be accepted in 2025 compared to other contenders like Ripple, Solana, or Litecoin.

Currently, Hedera’s distributed ledger technology is being utilized in WISeKey’s advanced digital identity platform within their upcoming generation of satellites. These satellites were recently propelled into space by a SpaceX rocket, contributing to the optimistic outlook among investors.

As an analyst, I’ve observed a rising significance of Hedera as a cost-effective substitute for Ethereum, which has caught the interest of even the largest cryptocurrency holders, or “whales.” Interestingly, data from HederaWatch indicates a surge in accounts owning between 100,000 and 10 million HBAR.

Analysis

On the one-day HBAR/USDT price graph, the MACD line, represented by blue, surpassed the signal line, which is orange in color. Both lines are heading upward, indicating that the market’s upward momentum remains robust.

HBAR’s price was also positioned above the Supertrend line, confirming the bulls were in control.

Currently, the 50-day Exponential Moving Average of this asset stays higher than its 200-day Exponential Moving Average, suggesting the possibility of further growth. Additionally, its Relative Strength Index (RSI) indicates that it has not yet reached an overbought state.

Previously, experts from CryptoNews identified a potential bullish sign on the HBAR daily chart – a bull-flag formation, which is commonly recognized as a positive indicator within the field of technical analysis.

According to these signs, the altcoin might surge up to $0.45, a point it hasn’t exceeded since last year in November, and if it surpasses this level, there’s a possibility it could climb further, potentially reaching the significant resistance level of $0.50.

Apart from the previously mentioned factors, the HBAR rally might receive extra boost if Bitcoin experiences a strong surge prior to Joe Biden’s inauguration on January 20th.

At press time, HBAR was still up 11.9%, trading at $0.3724 per coin.

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2025-01-17 12:54