Why Hedera should be on your watchlist
- HBAR’s social activity increased by 235% in the last week.
- With significant growth in token accumulation, HBAR’s price rallied by almost 30% in the last month.
According to Lunar Crush’s Social Engagement metric, Hedera’s [HBAR] social activity has increased by over 200% in the last week.
The social engagement metric measures community participation in social posts, measured by likes,… pic.twitter.com/FJFNFOkgz8
— LunarCrush (@LunarCrush) August 8, 2023
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The metric measures community interaction with tokens from social media posts. It tracks likes, retweets, comments, bookmarks, and participation from influential accounts.
A jump in an asset’s social activity often precedes a rally in its price, as it signifies increased interest in the token. As noted by Lunar Crush:
“Notice the spikes in social engagement (in blue) happening right before market activity/price movement (in green). Over the past week, there have been three price pushes, all preceded by soaring social engagement.”
Is Hedera well positioned for this rally?
HBAR accumulation is the new norm
Currently ranked as the 30th cryptocurrency asset in terms of market capitalization, HBAR’s price has seen notable growth in the past few weeks. According to data from CoinMarketCap, the token has seen a 32% price uptick in the last month.
One key reason for this value increase could be the non-significant correlation that the alt shares with leading coin Bitcoin [BTC], whose price has traded in a narrow price range since April.
On a D1 chart, HBAR accumulation trended upward. At the time of writing, key momentum indicators were spotted above their neutral center lines and have been so positioned since the beginning of August.
Signaling that the alt may the overbought, its Relative Strength Index (RSI) laid above 70 at press time. Likewise, HBAR’s Money Flow Index (MFI) was 72.63, inching closer to the overbought territory.
Further, the asset’s Chaikin Money Flow returned a positive 0.13 at press time. This indicator measures the amount of money flowing into and out of an asset over a specified period of time. A CMF value above the zero line is a sign of strength, as it shows that the market is being supplied with the liquidity necessary to drive up an asset’s value.
Assessing the strength of the uptrend, the Aroon Up Line (orange) was at a peak of 100% at press time. This indicator is used to identify trend strength and potential trend reversal points in a crypto asset’s price movement.
As was the case with HBAR, when an asset’s Aroon Up line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently.
Realistic or not, here’s HBAR’s market cap in BTC terms
In HBAR we trust
An assessment of the token’s exchange activity revealed that exchanges have been flushed with a high volume of HBAR trades since 5 August. According to data from Santiment, HBAR’s daily trading volume across crypto exchanges has since gone up by over 450%.