HBAR Surges 20% on New Partnerships and ETF Rumors
Hedera Hashgraph (HBAR) has experienced a remarkable rally, soaring 20% over the past few days. This surge in price was primarily driven by a new partnership in the RWA tokenization market and rumors circulating about the possibility of an upcoming HBAR exchange-traded fund (ETF).
On January 17, HBAR reached a 38-month high of $0.399, with its market cap briefly surpassing that of Stellar Lumens (XLM) before settling at $14.5 billion. The cryptocurrency saw a surge in trading volume, exceeding $2.65 billion in the last 24 hours, and a 25% increase in open interest in the futures market, reaching $562.46 million during the same period.
Several factors contributed to HBAR’s recent gains and could potentially lead to further price appreciation in the coming weeks.
Key Catalysts
One significant factor driving HBAR’s rally is its expansion into the RWA tokenization sector. The project recently announced a partnership with renowned gemstone certification giant World Gemological Institute and luxury Web3 fintech Vaultik to tokenize approximately $3 billion worth of diamonds and other luxury items on the Hedera blockchain network.
Furthermore, speculation surrounding the approval of an HBAR ETF by the U.S. Securities and Exchange Commission under the incoming Trump administration has also fueled investor optimism. Canary, a fund manager, has already filed for an HBAR-focused ETF, with analysts suggesting a higher likelihood of approval in 2025 compared to other cryptocurrencies like Ripple, Solana, and Litecoin.
In addition, Hedera’s distributed ledger technology was recently deployed in WISeKey’s digital identity platform, utilizing next-generation satellites launched aboard a SpaceX rocket. These developments have further bolstered bullish sentiment towards HBAR.
Moreover, HBAR’s growing prominence as a cost-effective alternative to Ethereum and recent advancements have attracted the attention of large investors. Data from HederaWatch indicates an increase in accounts holding significant amounts of HBAR.
Technical Analysis
From a technical perspective, HBAR’s price action remains bullish. The MACD line on the 1-day HBAR/USDT chart has crossed above the signal line, indicating a strong trend continuation. The price of HBAR is currently above the Supertrend line, confirming the dominance of bulls in the market.
Additionally, the 50-day Exponential Moving Average (EMA) remains above the 200-day EMA, suggesting the potential for further price appreciation. The Relative Strength Index (RSI) indicates that HBAR has not yet reached overbought levels.
Analysts at crypto.news have previously identified a bull-flag pattern on the HBAR daily chart, a bullish signal in technical analysis. Based on these indicators, HBAR could potentially rally to $0.45, with a breakout above this level potentially leading to a further increase towards the psychological resistance at $0.50.
Overall, the HBAR rally could receive additional support from a strong Bitcoin market ahead of Trump’s inauguration on January 20. At present, HBAR is trading at $0.3724 per coin, up 11.9%.