Hedera (HBAR) has become the Cryptocurrency with the strongest price drop among the top 100 Cryptocurrencies, after its price decreased by 20% in the past 24 hours. This sale took place just a few hours after the price increased sharply by up to 180%.
TinTucBitcoin analysis shows that the recent significant market decline may be related to increased speculation about a successor to the position of Chairman of the US SEC. However, this is not the only factor influencing this decline.
Hedera Struggles In Many Aspects Because Of This Point
HBAR price has seen a sharp increase after Canary Capital filed for the first exchange-traded fund (ETF) for the asset class. The event marked an important milestone for Hedera, sparking optimism among investors and stimulating initial price increases.
However, HBAR’s triple-digit price increase appears to be more tied to speculation that US President-elect Donald Trump may nominate Brian Brooks, a member of Hedera’s board, to be the next SEC Chairman. .
But yesterday, November 19, there was a twist when several media platforms suggested that crypto lawyer Teresa Goody Guillen could be the leading candidate. As a result, HBAR prices fell by 20%.
Following this development, total Open Interest (OI) in HBAR derivative products decreased from 120 million USD to 100.95 million USD.
The decline in OI reflects reduced speculative activity, as fewer traders initiate new positions. Furthermore, a decline in speculative activity often leads to a decline in liquidity, suggesting the currency may have difficulty maintaining its recent uptrend.
Additionally, the positive sentiment surrounding this project, which had increased previously, has now decreased. Typically, an increase in positive sentiment indicates an increase in optimistic comments about a cryptocurrency.
However, the recent decline in sentiment suggests a decline in these bullish comments. If this trend continues, it could further challenge HBAR’s ability to climb higher in the short term.
HBAR Price Prediction: Downward Trend
From a technical perspective, the drop in HBAR price can be attributed to the fact that the coin has become overbought. This is indicated by the Relative Strength Index (RSI), a momentum indicator.
In addition to measuring momentum, RSI also shows whether a Cryptocurrency is overbought or oversold. When the index crosses 70.00, it is overbought. Conversely, when below 30.00, it is oversold.
With this position, HBAR price can decrease from 0.13 USD to 0.095 USD. However, if buyback pressure increases for altcoins, this could change. If that happens, HBAR could rise to $0.016.