Altcoin
Will HBAR’s short-term act overshadow Hedera’s long-term goals?
HBAR’s performance revealed that the bullish momentum wasn’t in full swing. While short-term profits could still be focused upon the prevailing level of demand was also something traders must consider.
- Hedera unveils its long-term (5-year) strategy which includes the use of stablecoins to reach unbanked regions.
- HBAR’s short-term outlook remains bleak due to weak demand despite improving long-term outlook.
Having the right strategy in WEB3 could be the difference between success and failure. We recently looked into Hedera’s push towards the stablecoin segment but the network’s latest announcement revealed its strategic approach.
How many are 1,10,100 HBARs worth today
Not only is Hedera building toward becoming one of the top networks for stablecoin issuers, but it also has plans to position itself in a way that bridges the gap between digital assets and TradFi. The network recently revealed that it aims for exponential growth in the next five years with a keen focus on emerging markets. This strategy particularly aims to offer efficiency in international remittance.
One key use case being highlighted is international remittances, a $190T market in 2023, which we see gaining traction on #Hedera due to the network’s speed, institutional interest, and cost-efficiency.
Here, Hedera is already working with leading banks like @SBGroup and beyond. pic.twitter.com/TxPQwjuYW6
— HBAR Foundation (@HBAR_foundation) September 21, 2023
The Hedera network cited a recent stablecoin remittance trial that it conducted in conjunction with multiple global financial institutions. The initial test reportedly involved a transaction between Taiwan and South Korea. The network facilitated the transaction at just 5 cents and it took an average of 2.5 seconds.
Multiple top blockchains have been exploring how to bring financial services to unbanked individuals. Hedera is already working with Caribbean financial giant WiPay Caribbean to make that goal a reality. The partnership will use a stablecoin called WiCoin USD via the Hedera network. This is just one of the partnerships looking to tap into opportunities in emerging markets.
Hedera believes that its recently launched Stablecoin Studio, an open-source SDK represents an important step in speeding up stablecoin adoption. This strategy underscores Hedera’s long-term potential which could generate more value for its Hedera cryptocurrency in the long-term.
HBAR bulls struggle with short-term resistance
HBAR was off to what seemed like a healthy relief rally last week which saw it rally by as much as 16%. Fast forward to the present and that bullish momentum had already dissipated. HBAR exchanged hands at $.05 at press time.
Source: TradingView
A closer look at HBAR’s performance revealed that the bullish momentum was curtailed at the 50% Relative Strength Index (RSI) level. This confirmed that there was still a focus on short-term profit-taking and it also offered some insights into the prevailing level of demand. In other words, the market lacks enough momentum to exit the low range.
Read about HBAR’s price prediction for 2024
The above findings reflected the weak on-chain volume observed in the last few days. A contrasting outcome to the mid-month volume spike which occurred while the prices were rallying. A clear indicator that HBAR failed to sustain the bullish demand. Its weighted sentiment also pulled back, confirming weak short-term sentiment.
Source: Santiment
