Hedera Hashgraph [HBAR] has emerged as a prominent player in the current altcoin market cycle.
Over the previous month, it has witnessed an impressive surge of 9 times, jumping from $0.04 to $0.35, surpassing the performance of Bitcoin [BTC]. What catalyzed this significant upswing?
Factors Fueling HBAR’s Momentum
The primary catalyst behind the exponential surge of HBAR can be attributed to a substantial surge in market interest, pushing trading volumes beyond previous peaks in 2021.
Google Trends data reveals a notable spike in searches related to Hedera during November, reaching a peak in early December.
The heightened market interest has translated into increased social media engagement, paralleled by a surge in trading volume. HBAR’s trading volume hit an all-time high of $7.42 billion, surpassing the levels witnessed in March 2024 and 2021.
In 2021, the trading volume peaked at $1.31 billion, while it hit a record of $2.84 billion in March 2024, marking a nearly threefold increase in trading activity.
Additionally, speculations surrounding the potential appointment of Brian Brooks, a member of Hedera’s board, as the SEC chair, have added fuel to the rally. While predictions favor another candidate, the association with Brooks caused a significant 63% surge in HBAR’s price following the news.
Despite the strong fundamentals and partnerships associated with HBAR, its recent price rally seems predominantly steered by the intensifying market interest.
Nonetheless, crypto analyst Benjamin Cowen has raised concerns about a short-term bubble risk looming over the rally, signaling a possible stagnation or retracement in the near future.
Meanwhile, observations indicate signs of buyer fatigue around the $0.4 price level for HBAR, evident by the extended upper wick on the weekly candlestick chart.
In 2021, HBAR faced resistance at this level before retracing to $0.2, eventually surpassing this barrier to reach $0.57. This raises the pressing question – will history repeat itself?