The Hedera cryptocurrency (HBAR) has seen skyrocketing growth over the past week.
With a increase of 122%, its price went from 0.05 dollars to 0.15 dollars before retreating slightly to $0.12
This rally places HBAR in 27th place by market capitalization, with a value of $4.8 billion.
However, HBAR still remains 77% below its all-time high of $0.56, reached in 2021.
Several factors have aligned to trigger this rally in HBAR, among those are an ETF, Elon Musk and Coinbase.
The first has to do with the investment company Canary Capital, which submitted an application to the United States Securities and Exchange Commission (SEC) to launch the first ETF based on HBAR, as reported by CriptoNoticias.
This fund seeks to provide direct exposure to the value of cryptocurrency, clarifying that ownership of HBAR does not grant rights to business profits nor income streams.
According to the document, the acquired cryptocurrencies will be in the custody of a yet undisclosed entity.
Elon Musk and the entry on the scene of Coinbase
Since yesterday, rumors began to circulate a possible connection between Tesla and SpaceX CEO Elon Musk and Hederaas stated by CriptoNoticias through its account on X.
This rumor gained strength after a mysterious symbol shared by Musk on the social network X.
Although the direct link with HBAR has not been confirmed, Speculation has contributed to optimism around this cryptocurrency.
On the other hand, Charles Adkins, president of Hedera, advertisement that HBAR was included in the new COIN50 indexlaunched by Coinbase last week.
This index, designed to track the cryptocurrency market, selects assets through a methodology based on market capitalization and fundamental evaluation.
According to words Matthew Sigelhead of research at VanEck, the COIN50 aspires to become the “S&P 500 of cryptocurrencies”, increasing HBAR’s exposure to broader investors.
HBAR uses a unique consensus algorithm called Hashgraph, which allows transactions to be processed more efficiently, with lower latency and greater scalability compared to other blockchain networks. Additionally, HBAR serves as the native currency of the Hedera network, used for both paying transaction fees and governance.
Key resistances and supports
Despite the enthusiasm, the market presents significant technical challenges. The cryptocurrency faces immediate resistance at $0.16, followed by levels at $0.18 and $0.20, which could slow its rise. If it fails to overcome these barriers, the price is likely to consolidate or even retreat, explains Inside Bitcoins.
In terms of support, the $0.12 level, aligned with the middle Bollinger Band, acts as a crucial cushion in case of declines, as seen in the chart below.
The general price trend has been bearish for the last 6 months. The price has been below the Bollinger Bands, suggesting weakness in the market.
The Bollinger Bands have been narrowing over time, indicating a decrease in volatility. However, the price has been repeatedly touching the lower bandwhich could suggest a possible consolidation or even an upside reversal if it breaks to the upside.
Others Important supports are at $0.09 and $0.06areas where an increase in purchasing demand is expected if the downward pressure persists.
The rise of HBAR occurs in a context of general optimism in the cryptoasset market. Bitcoin (BTC), the leading cryptocurrency, has reached new all-time highs following Donald Trump’s election victory. This scenario has favored interest in alternative digital assets, such as Hedera.
Although HBAR has shown bullish behavior, current resistance and the inherent volatility of the market could slow its progress. However, the ETF application and inclusion in the COIN50 reinforce confidence in its long-term potential.
