Amid slow accumulation, Hedera gears up to unlock 1.5 billion tokens
- Hedera will release 1.5 billion HBAR tokens on 1 September.
- This would take place as HBAR accumulation stagnates among daily traders.
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This event will see the unlocking of 1.5 billion HBAR tokens, which represent 3.48% of the token’s circulating supply. The tokens to be unlocked will be worth around $65 million.
According to Token Unlock, the unlock distribution will include the release of 332.24 million HBAR for network governance & related operations, 416.69 million HBAR for purchase agreements, and 403.53 million HBAR for ecosystem & open-source development.
HBAR has a total supply of 50 billion tokens, with 33.03 million currently circulating. This represents 66% of the token’s total supply. Only 130 million HBAR tokens will remain locked upon completion of the token unlock event.
Primus inter pares?
Despite recent market troubles, HBAR’s price has rallied by 10% in the last month, according to data from CoinMarketCap. At the time of writing, the 30th largest cryptocurrency by market capitalization exchanged hands at $0.05.
While sharing a statistically significant positive correlation with Bitcoin [BTC], whose affairs have been overrun by bears in the last month, HBAR’s Directional Movement Index (DMI) showed that buyers have controlled the market among daily traders since 21 June.
At press time, the positive directional index (green) at 27.51 rested above the negative directional index (red) at 20.10. This indicated that the market remained in an uptrend, and HBAR’s price was likely to continue to rise.
Although the Awesome Oscillator has been a mix of red and green bars since the beginning of the month, its upward-facing direction suggested that ongoing bullish momentum was being sustained.
Read about Hedera’s price prediction for 2023/2024
However, despite the positives, there has been a drop in HBAR accumulation in the past two weeks. Its key momentum indicators Relative Strength Index (RSI) and Money Flow Index (MFI), have descended since 15 August.
The token’s RSI was 45.061 at press time, while its MFI rested on the center line at 51.36. The gradual decline of these indicators hinted at buyers’ exhaustion. An unabated drop in these indicators in the coming days might result in a negative price correction for HBAR.