Hedera [HBAR] witnessed massive growth on the social front in the last two days. Additionally, some bullish movement also led to a surge of 33% in the price of HBAR. But what led to the sudden growth experienced by the blockchain?
HBAR bulls make a strong comeback, pushing out of short-term range.- Hedera benefits after the Federal Reserve announced it will be using Dropp for FedNow.
Hedera’s native cryptocurrency HBAR is among the cryptocurrencies to watch this week judging by its impressive bullish start this week. So, let’s take a look at HBAR’s recent performance and the reasons behind its sudden shift.
We previously observed that HBAR traded in a short-term ascending price pattern restricted within ascending support and resistance lines. Furthermore, HBAR closed the previous week’s session with some downside, raising expectations that it would end up retesting its support. However, things turned out differently as the cryptocurrency kicked off this week with a strong rally.
HBAR exchanged hands at $0.073 at the time of writing. This means it was up by roughly 33% in the last three days, thus breaking out of its previous short-term range.
Source: TradingView
HBAR’s Relative Strength Index (RSI) was also deeply overbought with a slight downside from its latest peak, signaling some selling pressure. But so far the price has been holding up well in the current levels. So, what is the reason behind this rally?
An interesting twist in Hedera’s journey
The bullish momentum started after an announcement that the U.S. Federal Reserve will start using a micro payments solution called Dropp. The most notable thing here is that Dropp is built on the Hedera blockchain.
The world is currently monitoring the U.S. government’s digital dollar rollout. The blockchain networks that will support those efforts are expected to secure robust utility and hence growth. This would explain the excitement around Hedera’s recently revealed involvement with FedNow and the surge in demand for HBAR.
The excitement fueled a strong surge in Hedera and HBAR’s social volume in the last two days. This was accompanied by a spike in the weighted sentiment as investors quickly shifted their expectations in favor of the bulls.
Source: Santiment
Of course these findings were accompanied by a surge in bullish volumes, thus the robust rally. But just how much of an impact did this rally cause? Well, Hedera had a $1.84 billion marketcap on 13 August before the sudden bullish surge. Its marketcap recently surged past the $2.4 billion mark, which means its marketcap grew by over $500 million within the last 3 days.
Source: Santiment
Source : [HBAR bulls stage a breakout leading to a 33% rally: Unveiling the catalyst](ambcrypto.com/hbar-bulls-stage-a-breakout-leading-to-a-33-rally-unveiling-the-catalyst/) by Michael Nderitu - FedNow adds Hedera Hashgraph•AMBCrypto by Michael Nderitu / August 16, 2023
