Hedera Hashgraph’s native cryptocurrency, HBAR, has surged 20% in recent days, driven by a new partnership in the RWA tokenization market and speculation surrounding the approval of a spot HBAR exchange-traded fund. As of January 17, HBAR reached a 38-month high of $0.399, with its market capitalization briefly surpassing that of Stellar Lumens before settling at $14.5 billion.

HBAR’s Recent Gains and Market Activity

The recent gains in HBAR were accompanied by a significant surge in activity and demand among traders. The trading volume of HBAR more than doubled to over $2.65 billion in the last 24 hours, while open interest in the futures market rose by 25% to $562.46 million during the same period.

Catalysts Behind HBAR’s Rally

Several factors have contributed to HBAR’s recent rally, which may potentially extend its gains in the coming weeks. These include:

  • A recent partnership between Hedera, World Gemological Institute, and luxury Web3 fintech Vaultik to tokenize around $3 billion worth of diamonds and other luxury items on the Hedera blockchain network.
  • Speculation surrounding the approval of a spot HBAR exchange-traded fund by the U.S. Securities and Exchange Commission, with fund manager Canary already filing for an HBAR-focused ETF.
  • The deployment of Hedera’s distributed ledger technology in the digital identity platform WISeKey’s next-generation satellites, which were launched aboard a SpaceX rocket.

These developments have drawn the attention of whales, with data from HederaWatch revealing an uptick in accounts holding between 100k and 10 million HBAR.

Technical Analysis

From a technical standpoint, the MACD line has crossed over the signal line on the 1-day HBAR/USDT price chart, indicating strong trend strength. Additionally, HBAR’s price is positioned above the Supertrend line, confirming that the bulls are in control. The 50-day Exponential Moving Average has remained above the 200-day EMA, suggesting potential for further gains.

A look at the Relative Strength Index (RSI) shows that HBAR is yet to hit overbought levels. Analysts have also noted that the HBAR daily chart has formed a bull-flag pattern, a strong bullish signal in technical analysis.

Price Projections

Based on these indicators, HBAR is likely to rally to $0.45, a level it has not breached since November 2021. A breakout of this level could see it rallying towards the psychological resistance level at $0.50.

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