Hedera price rallied over 8% this week amid a notable jump in the stablecoin supply held on the network.
Summary
- Hedera price rebounded 8% this week amid an uptick in network activity.
- HBAR price action is close to confirming a bullish crossover on the daily chart.
According to data from crypto.news, Hedera (HBAR) price rallied 8.7% over this week amid a broader crypto market rebound largely fueled by Bitcoin reclaiming key support levels and improved investor appetite for risk assets amid a surge in tech stocks.
The token’s rally also gained support from a jump in stablecoin supply held on the network. Data from DeFiLlama show that its stablecoin supply has surged nearly 17% over the past seven days, driven largely by USDC, which accounts for about 99.8% of the total supply.
A surge in stablecoin means more users are transacting, deploying capital, or seeking yield on the network. Such activities tend to support retail sentiment.
Demand from derivative traders also provided an impetus to HBAR’s rally. Notably, Hedera futures open interest has increased by 3% in the past 24 hours, while its weighted funding rate has also turned positive.
A positive funding rate means more traders are entering the market with bullish bets, which in turn is improving overall market sentiment.
On the daily chart, Hedera price has broken above a descending trendline that had been acting as a dynamic resistance, capping price movement since late October last year. When an asset breaks out of such a descending trendline resistance, it is typically a sign of a trend reversal, with dominance shifting to the hands of bulls.
The 20-day SMA appears close to moving above the 50-day SMA, forming what traders term a short-term bullish crossover. When such crossovers are confirmed, cryptocurrencies have often sparked sharp rallies.
Adding to the bullish outlook, the MACD lines have also pointed upwards and are close to moving above the zero line.
Hence, the price outlook for Hedera appears to be bullish for now, with the token most likely to target $0.12 next, which aligns with the 23.6% Fibonacci retracement level.
On the contrary, if bears can push the price below the 20-day SMA of $0.097, Hedera could enter a downtrend.
However, the lackluster demand for Hedera spot ETFs could become a bottleneck for any upside move, especially since other assets like XRP and Solana ETFs have continued to outpace HBAR in both net daily inflows and total assets under management (AUM).
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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