- Hedera has onboarded a new social network and this could be a game changer
- HBAR retraced after pushing into a short-term resistance level
The Hedera network just concluded one of its most exciting weeks in recent history. This, largely due to the launch of its first social network called Calaxy. In the midst of it all, HBAR’s price action seems unfazed by the milestone.
Is your portfolio green? Check out the Hedera Profit Calculator
Calaxy has the potential to attract more users onto the Hedera ecosystem given that it is a social platform. Such developments often have a positive impact on the native cryptocurrency of a host blockchain network. However, HBAR, for its part, did not demonstrate a shift in its demand dynamics within the last 48 hours.
Before we depart for the weekend, I, on behalf of the @CalaxyApp team, wanted to thank the @hedera community for embracing Calaxy MVP that we released yesterday morning ?
It’s been a difficult 3 years and our team worked so hard for this moment but boy was it worth it ?
1/
— Solo Ceesay (@SoloCeesay) August 12, 2023
Instead, HBAR’s price has been on a bearish trajectory for the last 3 days since mid-week. Prior to that, the cryptocurrency was on a bullish trajectory.
Zooming out on HBAR’s price action also revealed that it has been moving within an ascending pattern since the second week of June. Additionally, the same pattern is underpinned by support and resistance too.
Is HBAR heading for a support retest?
Interestingly, HBAR’s mid-week bearish pivot occurred after a retest of its ascending support on Wednesday. The rally peaked at the $0.63 price level and has since dropped to its $0.57 price range.
The same pattern suggested that the price may register the next support retest around the $0.53 price range, especially if it maintains its ongoing trajectory.
Source: TradingView
A quick look at on-chain data also revealed that HBAR’s volume is back to regular levels after its previously robust surge during the latest rally. This also underlined the bearish outcome over the last few days. The price surge towards the beginning of August was accompanied by a robust uptick in bullish confidence among investors, as evidenced by the weighted sentiment.
Source: Santiment
Furthermore, an interesting observation pertaining to each peak can also be made. Each volume peak was accompanied by a subsequent volume surge. Also, each volume spike was accompanied by a significant pullback.
The gap between the volume spikes has been narrowing each time, hence the possibility that the next spike will take place soon. These findings come at a time when the market has been experiencing a resurgence of social dominance.
In fact, the latter was highest in May if we look at the last 3 months alone.
Source: Santiment
Realistic or not, here’s Hedera market cap in BTC’s terms
Meanwhile, Hedera’s development activity has also been gradually recovering over the past 3 months. It was lowest in the first week of June and highest two months later. Here, it’s worth noting that it has so far maintained healthy levels, which may inspire some more confidence among HBAR holders.
