As a seasoned crypto investor with over two decades of experience in the financial markets, I’ve seen my fair share of market cycles and trends. The recent surge in Hedera (HBAR) has caught my attention, not just because of its impressive gains but also due to the fundamental factors driving this rally.
On December 7th, Hedera soared to a peak of $0.369, marking a three-year high for the cryptocurrency. This remarkable surge translates to an impressive increase of more than 120% in just seven days. As a result, its total market capitalization surpassed $12.78 billion.
Over the past while, the altcoin’s surge has boosted its monthly profits nearly sixfold, positioning it as one of the highest-performing cryptocurrencies in the top 100, according to statistics from CoinGecko.
On the day in question, the daily trading volume for Hedera’s cryptocurrency (HBAR) surged by approximately 140%, reaching around $4.66 billion. This surge occurred concurrently with an increase in open interest for its futures market. According to data from CoinGlass, the open interest in the HBAR futures market reached a new record high of $459.87 million, representing a significant jump from its November low of $32.8 million.
Why is Hedera going up?
The significant increase in price is mainly due to Hedera’s partnership with Elon Musk’s SpaceX. In this collaboration, they are working together to incorporate Hedera’s blockchain technology into SpaceX’s space expeditions, primarily focusing on developing sophisticated data-tracking systems.
The development has generated buzz among investors and the blockchain community. See below.
As a researcher, I’m astounded that this groundbreaking collaboration between Hedera and SpaceX isn’t more widely discussed. In January, a satellite will be launched into orbit, powered by the Hedera Hashgraph’s HBAR cryptocurrency. This is a first, a historical milestone, it’s mind-blowing, and truly represents real blockchain innovation.
— Erik Rolf Pettersson (@pettersson_usa) December 5, 2024
One factor fueling the surge is Hedera’s involvement in blockchain-based federal payment systems, particularly with the Federal Reserve’s FedNow network integrating the micro-payment platform Dropp, a Hedera-based system that facilitates transactions using HBAR, thereby increasing its practicality.
Furthermore, there’s growing enthusiasm among traders regarding a potential exchange-traded fund centered around Hedera. Canary Capital submitted an application for this ETF to the U.S. Securities and Exchange Commission, and the buzz has grown louder with rumors of SEC Chairman Gary Gensler’s resignation. Some predict that approval is more probable under the incoming Trump administration.
Lately, recent advancements have caught the interest of whales too. Information from HederaWatch suggests a significant rise in accounts that hold anywhere between 100,000 to 100 million HBAR units.
Remarkably, there’s been a significant surge in the number of accounts holding more than 100 million tokens. This figure has grown by more than 20% since August.
Over the last few weeks, there’s been a significant increase in public curiosity about HBAR, as evidenced by Google Trends. This spike in interest coincides with the HBAR Fear and Greed Index from CFGI, which is currently at 84, suggesting an extreme level of enthusiasm or greed.
According to these measurements, it seems that traders are keen to profit from possible increases, which could continue boosting the upward trend of HBAR’s price.
HBAR has strong technicals
On a day-to-day scale, Harmonium’s (HBAR) price hovers significantly above both its 50-day and 200-day exponentially weighted moving averages. This suggests that the bullish trend is ongoing, contributing to the increasing demand that has fueled recent price increases.
The Moving Average Convergence Divergence (MACD) supports this upward trend since the MACD line is higher than the signal line and moving up, indicating a robust bullish movement in the market.
Currently, HBAR is being exchanged for approximately $0.34 per token. Given the optimistic signs, it’s anticipated that the next potential goal for this token could be the $0.40 psychological barrier. If it manages to surpass this level, it may aim for the $0.45 milestone thereafter.
According to analyst WSB Trader Rocko’s prediction, the value of HBAR might surge up to $0.576, representing a possible increase of 70% from its present prices.
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2024-12-07 21:48