Investor enthusiasm is sparked by the 25% increase in Hedera (HBAR) to a two-year high, which is attributed to bullish signals and Fed integration.
The price of Hedera (HBAR) has experienced a bullish shift in the past 24 hours, reaching a two-year high of $0.1808 before encountering resistance. Despite the resistance, the HBAR price was trading at $0.1823 at press time, a 25% increase from the intra-day low.
During the rally, the trading volume and market capitalization of Hedera (HBAR) increased by 261% and 25%, respectively, reaching $954.36 million and $6.92 billion.
Price of Hedera (HBAR) increases by 25%
The price of Hedera (HBAR) has exhibited a robust upward trend, further bolstered by technical indicators that indicate sustained bullish trends following a rise of more than 25%. A “golden cross” was recently formed when the HBAR price crossed both its 50-day (SMA 50) and 200-day (SMA 200) simple moving averages.
The current price of the SMA 50 is $0.07545, while the SMA 200 is $0.07169. Both are significantly lower than the current price.
The Relative Strength Index (RSI) for HBAR has reached 78.56, which is on the cusp of the overbought zone of 80. This implies robust purchasing activity but also suggests a potential price consolidation, as traders may take profits. Nevertheless, analysts continue to express optimism, with Javon Marks predicting a possible rally to $0.504, which would represent a 192% increase from current levels.
Increase in market activity enhances investor confidence
The price increase in HBAR has been accompanied by a rise in open interest and trading activity, which suggests that market participation is on the rise. Open interest increased by 48.26% to $208.25 million, while trading volume increased by 261% to $954.36 million in 24 hours.
This increase implies that new capital is entering the market, which could support a sustained upward price movement.
The current movement of Hedera (HBAR) is consistent with Elliott Wave theory, which implies that there is a possibility of an additional high shortly, as per More Crypto Online. Key resistance levels at $0.176, $0.20, and $0.23 are being monitored by analysts. A breakout above these levels could further validate the favorable trend.
Federal Reserve Collaboration Fosters Positive Sentiment
The recent price increase of HBAR is bolstered by its expanding involvement in blockchain-based federal payment systems. Dropp facilitates the integration of Hedera into the Federal Reserve’s FedNow payment platform, which enables real-time payments with enhanced security and efficiency.
Furthermore, it is anticipated that Ripple (XRP), which has collaborated with Hedera to facilitate USD transactions, will obtain regulatory authorization to introduce its RLUSD stablecoin in December 2024. This partnership could improve the interoperability between Ripple and Hedera, bolstering the adoption of HBAR in the payments sector.
At the same time, HBAR traders are optimistic about the prospective approval of a Hedera exchange-traded fund (ETF) submitted by Canary Capital to the U.S. Securities and Exchange Commission (SEC). The potential for an ETF approval under Trump’s administration is high, as Gary Gensler has resigned as SEC chairman. This could result in a broader exposure for institutional investors, which could drive further price increases in HBAR.