DailySun
On Monday, Dec. 2, HBAR emerged as one of the standout performers in the cryptocurrency market, fueled by substantial whale accumulation and enthusiastic community engagement surrounding the HBAR ecosystem.
Hedera (HBAR) surged by 47% within a 24-hour period, trading at a seven-month peak of $0.253 before pulling back slightly, stabilizing at $0.250 at the time of writing. This latest rally pushed its monthly gains to over 450%, while its market capitalization reached $9.65 billion.
Speculation Boosts HBAR Rally
The HBAR rally is largely driven by its increasing involvement in blockchain-based federal payment solutions. Hedera’s collaboration with the Federal Reserve’s FedNow payment network, enabled by Dropp, supports real-time, secure, and efficient financial transactions.
Additionally, there are rumors surrounding Ripple’s potential partnership, with suggestions indicating that Hedera might expand its integration to accommodate Ripple’s future RLUSD stablecoin. If accurate, this development could create an interoperability framework between HBAR and XRP, enhancing their collaboration on global standards for CBDC and stablecoin transactions.
Moreover, HBAR traders are optimistic due to speculation regarding the possible approval of a Hedera-centric exchange-traded fund submitted by Canary Capital to the U.S. Securities and Exchange Commission. With Gary Gensler resigning as SEC chairman, the likelihood of approval under a Trump administration appears plausible. This could pave the way for increased institutional investment, further propelling HBAR’s price.
Recent events and rumors have led to a surge in whale activity. Data from HederaWatch indicates a significant rise in accounts that hold between 100,000 and 100 million HBAR, with those holding 100 million increasing by over 20% since August.
The spike in HBAR’s price has corresponded with a substantial rise in trading volumes and open interest. Over the past 24 hours, trading volumes soared by 323% to $3.46 billion, while open interest increased by 76% to $324 million. This influx suggests new capital entering the market, potentially providing the necessary momentum for ongoing price appreciation.
Additionally, HBAR has attracted notable retail interest, achieving its highest search volume in U.S. markets in five years, as per Google Trends.
HBAR is Overbought
On the daily HBAR/USDT chart, HBAR’s price has surpassed both its 50-day and 200-day Simple Moving Averages, forming a golden cross. This phenomenon typically signals bullish potential, indicating increasing momentum and possible further price hikes.
Concurrently, the Relative Strength Index has reached 83, indicating robust buying and reinforcing the bullish trend. Nevertheless, an RSI above 70 generally indicates overbought conditions, suggesting that HBAR may be due for a pullback if the current momentum wanes.
In the event of a price correction, the altcoin could find support at $0.1358, corresponding with the middle Bollinger Band, a previously tested support level during its decline on Nov. 25.
