HBAR, the native token of Hedera Hashgraph, an enterprise-grade distributed ledger technology, has witnessed a price increase of almost 10% in the last 24 hours. This rally was driven by a significant increase in inflows into the spot market during this period..
Increased buying pressure allows the HBAR token to increase its profits in the short term. Here’s why.
Hedera sees an increase in spot inflow
Data from online analytics platform Coinglass shows an influx of $2 million into the HBAR spot markets on Friday. This indicates growing confidence in the future price performance of the altcoin.
When investors increase spot inflows into an asset, they directly invest in it in spot markets, where transactions occur at the current market price. This reflects growing investor confidence as it signals that more participants are buying the asset directly. Such inflows often increase demand, potentially pushing up the price of the asset.
Moreover, the positive performance of HBAR technical indicators further confirms this surge in demand. For example, the Elder-Ray Index value indicates increased bullish strength. At the time of writing, it is 0.021.
The Elder-Ray Index measures the strength of bulls (buyers) and bears (sellers) of an asset. As with HBAR, when its value is positive, it indicates bullish dominance, suggesting upward price momentum and a potential buying opportunity.
Notably, HBAR’s rising Relative Strength Index (RSI) confirms that its traders are taking advantage of this buying opportunity. At the time of writing this article, the indicator is in an uptrend at 57.25, signaling a steady increase in demand for the altcoin.
RSI measures oversold and overbought market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and its price should decline. Conversely, values below 30 suggest that the asset is oversold and a rebound may occur.
HBAR’s RSI reading of 57.25 indicates a mildly bullish trend, suggesting that the altcoin is gaining strength but is not yet overbought. This signals that there is room for further price increases.
HBAR Price Prediction: Will Bulls Push It to the $0.58 High?
HBAR is currently trading at $0.29. If buying pressure intensifies, the token price will return to its multi-year peak of $0.38, which was last reached on December 3. A successful break of this key resistance could pave the way for HBAR price to reclaim its all-time high of $0.58. .
On the other hand, an unsuccessful attempt to break through the $0.38 resistance level will lead to a downward trend. In this case, the price of HBAR could drop to $0.20.
