What next for HBAR on the back of network activity spike?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Hedera’s on-chain activity continued to spur HBAR’s steady price recovery
- Overwhelming bullish conviction highlighted by longs’ advantage in the Futures market
Hedera [HBAR] continued its resilient recovery with a 21% hike over the past week after a major price slump. Despite the price retracement in the last 24 hours, the price looked to stabilize at a key Fib level.
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Earlier in the year, HBAR rallied significantly from the $0.036 support level to hit a year-high of $0.093. However, a notable price dip followed in Q2 2023, one which wiped off 80% of its 2023 gains.
HBAR’s recovery has been slow and steady, but recent network developments for Hedera could speed up its price rebound.
On-chain developments spur price recovery
A recent quarterly report on Hedera highlighted its growing ecosystem. The network witnessed a 288% jump in average daily active accounts and a 340% increase in the number of new accounts created on the chain. Both metrics signalled an inflow of new players to the Hedera ecosystem.
This has translated to a decent price rebound for HBAR, Hedera’s native token. A look at HBAR’s price action on the daily timeframe showed a 36% increase in July. This was followed by a pullback, but bulls rallied again to reach another near-term high of $0.064 on 9 August.
Using the Fib retracement tool, it highlighted the easing of the current retracement at the 38.2% Fib level ($0.057). This put HBAR in good stead to continue its upward movement.
Even though the RSI fell to 54, it maintained its position above neutral 50 to highlight decent bullish pressure. On the other hand, the OBV continued its upward trajectory while the CMF flipped positive with a reading of +0.10.
A continuation of the uptrend can see bulls target the $0.059 to $0.068 price levels. On the flip side, bears could take advantage of further retracements to target price levels between $0.049 to $0.054.
Buyers are overwhelming favourites in Futures market
How much are 1, 10, or 100 HBAR worth today?
Finally, data from Coinglass underlined the immense dominance buyers held in the derivatives market. Longs held a 56.5% share of HBAR’s open contract positions on the four-hour timeframe. This amounted to $5.44 million worth of long positions.
This may be seen as a sign that HBAR’s bullish activity could extend significantly in the mid to long-term.