Hedera Hashgraph (HBAR) Analysis: Price Decline Amid $500M Open Interest Surge

Hedera Hashgraph (HBAR) has recorded a price surge, drawing attention in the crypto market. 

This follows an explosive rally that pushed the price past key Fibonacci retracement levels, including the 78.6% level at $0.20159 and the 100% retracement at $0.26939, before briefly reaching the 127.2% extension at $0.35557. 

HBAR Breakout Targets $0.45 Resistance

The breakout from a prolonged downward trendline earlier this year signalled a strong shift in market sentiment, propelling the price into bullish territory. 

Historical support zones between $0.14837 and $0.11098 acted as a launchpad for this move, while immediate resistance around $0.35557 and $0.45  remains unbroken, capping the upward momentum.  

Source: Tradingview

Technically, the MACD reflects a bullish crossover, with the MACD line at 0.02918 above the signal line at 0.01182, confirming upward momentum. However, the narrowing gap between the lines and an RSI of 76.53 suggest overbought conditions and the potential for a pullback. 

If HBAR maintains its position above the 100% Fibonacci level at $0.26939, it could reignite bullish sentiment, potentially pushing toward the 161.8% extension at $0.46519. Conversely, a breakdown below this level could trigger a deeper correction toward $0.20159 or lower.  

HBAR Market Cap Dips 3.84% to $10.83B Amid Cooling Phase

According to CoinMarketCap data, HBAR is priced at $0.2834 at the time of writing, marking a 3.49% drop over the past 24 hours. The market cap has declined to $10.83 billion, down 3.84%, reflecting a cooling phase after the asset’s recent rally observed in the HBAR/USDT trading pair.

Trading volume within the last 24 hours stands at $1.87 billion, representing a notable 14.19% decrease, indicative of reduced market activity as the price consolidates around this level. 

HBAR’s fully diluted valuation (FDV) remains significant at $14.16 billion, with a circulating supply of 38.22 billion tokens, equating to approximately 76% of its total and maximum supply of 50 billion tokens.

Source: CoinMarketCap

The chart reflects a volatile trading session, where HBAR briefly reached $0.2942 before retracing. This aligns with the price levels observed on the weekly HBAR/USDT chart, which highlighted a breakout past the 100% Fibonacci retracement at $0.26939, followed by a dip after testing resistance near $0.33559. 

$500M Open Interest Pushes HBAR Above $0.33559

Taking more reference to on-chain data, Hedera Hashgraph (HBAR) has witnessed a notable correlation between its price action and derivatives open interest. During the recent rally, open interest surged beyond $500 million, reflecting heightened trader activity and confidence in bullish momentum. 

Source: Coinglass

This aligns with the price breakout observed on the HBAR/USDT chart, where the asset surpassed $0.33559. Combined with HBAR’s market cap of $10.83 billion, this suggests increasing market participation driven by both on-chain and trading dynamics. 

FAQ’s

What factors contributed to the recent price surge of HBAR? 

HBAR surged due to a trendline breakout, key Fibonacci levels, and $500M open interest driving bullish momentum.

How does HBAR’s market cap decline affect its future price movements?

A market cap dip signals cooling sentiment, which could limit short-term growth but retain long-term bullish potential.

What is the significance of the $500M open interest spike in relation to HBAR’s price?  

The $500M open interest spike reflects strong trader activity, reinforcing bullish sentiment and driving upward price momentum.