HBAR, the native cryptocurrency of Hedera Hashgraph, an enterprise-grade distributed ledger technology, has seen a price increase of nearly 10% in the past 24 hours. This growth was driven by a significant increase in inflows into the spot market during that period.
Strong buying pressure often helps HBAR expand its gains in the short term. Below is the reason why.
Hedera recorded a surge in cash flow into the spot market
Data from on-chain analytics platform Coinglass shows $2 million inflows into HBAR’s spot market on Friday, indicating growing confidence in the altcoin’s future price performance.
When investors increase cash flows into the spot market, they invest directly in the asset in the spot markets, where trading takes place at the current market price. This reflects growing investor confidence as it shows more participants are buying assets directly. Such cash flows often push up demand, potentially creating upward pressure on asset prices.
Furthermore, HBAR’s positive technical indicators further confirm this increase in demand. For instance, the value of its Elder-Ray Index shows that bulls’ strength is growing. As of the time of writing, this index is at 0.021.
The Elder-Ray Index measures the strength between the bulls (buyers) and bears (sellers) of an asset. As with HBAR, when its value is positive, it shows that the bulls are in control, suggesting bullish momentum and buying opportunities.
Notably, HBAR’s Relative Strength Index (RSI) is rising confirming that traders are taking advantage of this buying opportunity. As of press time, the index is in an uptrend at 57.25, showing that demand for altcoins is steadily increasing.
The RSI measures the overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating the asset is overbought and possibly bearish. Conversely, values below 30 indicate the asset is oversold and could recover.
HBAR’s RSI at 57.25 shows a fairly positive trend, suggesting that the altcoin is strengthening but not yet overbought. This shows that there is still room for prices to continue to increase.
HBAR price prediction: Will the bulls push the price to a peak of 0.58 USD?
HBAR is currently trading at $0.29. If buying pressure continues to mount, the coin’s price could return to its multi-year peak of $0.38, a level last reached on December 3. A successful break through the threshold This key resistance could pave the way for HBAR price to return to its all-time high of $0.58.
On the contrary, if the resistance level of 0.38 USD cannot be overcome, a downtrend will appear. In that case, HBAR price could drop to 0.20 USD.