Hedera’s HBAR faces potential further decline as bearish trends persist. The currency has just gone through a 10.52 percent drop in the past week, suggesting continued downward pressure.
Currently trading at $0.08050, HBAR has seen a 5.21 percent intraday decline. Failing to breach the resistance level, it risks sinking to new lows from the current support at $0.07500.
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The bearish trend is evident as HBAR falls below the critical 20-day exponential moving average (EMA), possibly experiencing negative spikes and gaining support from EMAs due to increased selling pressure. The strong downtrend, coupled with a relative strength index of 45.13 and a 14-day simple moving average rejecting from the middle line at 63.02, suggests further potential downside.
Unless demand surges and HBAR maintains the immediate level, the crypto could turn around, targeting $0.1000. However, the present indicators and resistance levels underscore the prevailing downward pressure.
On the technical front, resistance is identified at $0.1000. This presents a critical level for a potential upward reversal.
However, on Tuesday, HBAR’s price lingered near its highest point in over a year, reaching $0.0948, just shy of the December peak at $0.0952. The token has experienced a remarkable surge, exceeding 135 percent from its low point in June of the previous year.
The uptrend in HBAR’s price was sustained as traders celebrated the robust performance of SaucerSwap, one of its major decentralized applications (dApps). The SAUC token witnessed a notable 30 percent surge on Tuesday, achieving an all-time high of $0.074 and elevating its total market cap to surpass $43 million.
Simultaneously, the total Vvlue locked (TVL) in Hedera Hashgraph’s ecosystem reached a record high, surpassing $74 million this week. Beyond SaucerSwap, other components of the ecosystem demonstrated positive momentum.
Hedera’s history
The Hedera crypto functions as a public network, fostering a decentralized economy that encourages the development of robust dApps by individuals and businesses. Securing its network is the unique Hashgraph consensus system, governed by a rotating council comprising up to 39 organizations across 11 sectors.
The Hedera project addresses several challenges in traditional blockchains, focusing on performance, security, and governance. It introduces a distributed ledger technology platform as an innovative alternative to existing decentralized systems, offering solutions to issues commonly faced in the crypto landscape.
The project secured funding through an ICO in August 2018, with the mainnet opening to the public in September 2019. During the ICO, investors had the opportunity to acquire the platform’s utility token (HBAR) at the lowest available price.
Traditionally, blockchains struggle with processing high transaction volumes, hindering mainstream adoption and use in high-performance applications. Hedera significantly boosts transaction speeds by utilizing the unique Hashgraph consensus protocol, overcoming this limitation.
Ensuring optimal security, Hedera’s proof-of-stake consensus mechanism is resilient against malicious attacks and node failures on the network. A governing council, composed of major international enterprises and organizations, guides and oversees the network’s development. This approach is expected to create more transparent and balanced decision-making and address concerns often associated with traditional blockchains.
All Hedera nodes are operated by either Hedera or council members, with plans to transition to a permissionless system in the future.
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