The reason behind the recent strong price surge of Hedera Hashgraph (HBAR). Below is a summary of the key factors that contributed to this spike:
1. Reduced supply on exchanges
The number of HBAR tokens withdrawn from exchanges has surged, indicating that large investors (whales) are accumulating this coin. According to analysis, the 'supply shock' has created upward price pressure due to demand far exceeding supply.
2. Increased interest and search
The search volume for HBAR on Google has surged, reflecting growing attention from the community and investors. This is often a signal that many people fear missing out on the opportunity (FOMO), further driving capital into this coin.
3. Political factors and ETF events
• Rumors that Brian Brooks, a member of the board of directors of Hedera Hashgraph, may be considered for the Chairman of the U.S. Securities and Exchange Commission (SEC) have created positive psychological momentum.
• Canary Capital's application for ETF fund approval for HBAR is also an important factor, as the market predicts that the SEC will more readily approve cryptocurrency ETF funds following the success of Bitcoin and Ethereum ETFs.
4. Strong technical indicators
• A double bottom pattern formed from January 2023 to November 2024, combined with the breakout of the significant resistance level of $0.1796, has provided momentum for the price rise.
• HBAR has also surpassed important technical indicators such as the 50% Fibonacci Retracement and the 50-week Moving Average.
• RSI and Stochastic Oscillator are in overbought territory, indicating that the bullish trend may continue, with a potential target of the historical price level of $0.5690.
Forecast
If the above factors continue to hold, the price of HBAR is likely to continue increasing in the short and medium term. However, investors should closely monitor market sentiment fluctuations and upcoming events related to policies or the SEC.
