The native digital currency of Hedera, HBAR, has been capitalizing on the bullish momentum it gathered throughout November. It recently wrapped up a particularly bullish week, securing a position among the top performers in the past seven days.
Starting the week at $0.164 and peaking at $0.392, HBAR observed a significant 136% rise from its lowest to highest point during the week. This recent surge has now totaled a remarkable 831% gain from its lowest point in November 2024.
This impressive recovery has unfolded in less than six weeks, culminating in a closing price of $0.33 for the week.
The cryptocurrency’s strong weekly performance also propelled its price to reach a new all-time high. Currently, HBAR appears oversold, with signs of emerging selling pressure as traders who entered the market at recent lows begin to capitalize on profits.
Are Sell Pressures Mounting for HBAR?
The initial surge in bullish momentum was driven by increased spot demand, which peaked at $48.22 million on December 2nd before tapering off.
Recent data indicates that there were outflows totaling $8.62 million in the past 24 hours, signaling a gradual accumulation of selling pressure.
Simultaneously, open interest has been steadily increasing throughout the week, reaching a new high of $459.87 million on Saturday.
Despite the prevalent positive funding rates, hinting at persistent demand dominance over potential sell pressure in derivatives, a notable surge in negative funding rates could signify an imminent increase in selling pressure.
On-Chain Statistics Suggest a Slowdown in Hedera’s Momentum
As the bullish momentum for HBAR appears to decelerate, a looming downtrend might be imminent, indicating a decrease in on-chain volumes from their peak on December 3rd.
Peak volume reached $67.59 million on that particular day, marking an all-time high for Hedera’s on-chain volume.
Subsequently, the volume has dwindled to approximately a third of its peak value, while the Total Value Locked (TVL) hit its zenith at $211.86 million on December 3rd, now descending to $196.65 million. Despite the recent TVL peak credited to HBAR’s price surge, the decline hints at diminishing confidence or profit-taking among investors.
In HBAR terms, the TVL has exhibited a consistent decline from 1.06 billion HBAR on November 16th to 594.67 HBAR as of December 8th.
While the substantial TVL drop might raise concerns about investor confidence, potential profit-taking, or a loss of momentum, a resurgence in demand could potentially fuel HBAR’s continued rally.