HBAR Hits Seven-Month High After 47% Rally as Whales Accumulate

Hedera (HBAR) has become one of the standout performers in the cryptocurrency market on December 2, experiencing a significant 47% rally. The price reached a seven-month high of $0.253 before retracing slightly to $0.250 at press time. This surge has extended HBAR’s monthly gains to over 450%, with its market capitalization climbing to $9.65 billion.

Factors Driving HBAR’s Rally

Several factors are contributing to HBAR’s remarkable price performance:

• Blockchain-powered Federal Payment Systems: Hedera’s integration with the Federal Reserve’s FedNow payment network through Dropp has driven optimism. This collaboration allows for real-time, secure, and efficient transactions, positioning Hedera as a crucial player in blockchain-based payment systems.
• Speculation Around Ripple’s RLUSD Stablecoin: Rumors have been circulating that Hedera could be involved in supporting Ripple’s RLUSD stablecoin. If true, this could lead to a collaboration between HBAR and XRP, facilitating cross-chain interoperability for stablecoin and central bank digital currency (CBDC) settlements.
• Hedera-focused ETF Speculation: Traders are also speculating that a Hedera-focused exchange-traded fund (ETF), filed by Canary Capital with the U.S. Securities and Exchange Commission (SEC), could soon be approved. With the SEC chairman Gary Gensler stepping down and the possibility of a more crypto-friendly administration under Trump, approval of the ETF seems likely. This potential approval could attract institutional investment, further boosting HBAR’s price.

Whale Accumulation and Growing Retail Interest

The rally is further fueled by whale accumulation. Data from HederaWatch shows a sharp increase in the number of accounts holding between 100,000 and 100 million HBAR, with accounts holding 100 million or more increasing by over 20% since August. This accumulation is seen as a sign of growing institutional and high-net-worth investor confidence in Hedera’s future prospects.

Additionally, trading activity has spiked. 24-hour trading volume surged by 323% to $3.46 billion, and open interest jumped by 76% to $324 million. These indicators show strong capital inflow and suggest continued upward momentum.

On top of that, retail interest is at an all-time high, with Google Trends showing the highest search interest in U.S. markets for Hedera in five years.

Technical Indicators: HBAR is Overbought

On the technical side, HBAR’s price has crossed above both its 50-day and 200-day Simple Moving Averages, forming a golden cross, a bullish signal often indicative of continued momentum. Additionally, the Relative Strength Index (RSI) has hit 83, indicating that HBAR is currently experiencing strong buying activity.

However, an RSI above 70 is generally considered to indicate that the asset is in overbought territory. This could suggest a potential cooldown or price pullback in the near future. If the price does reverse, $0.1358 could serve as support, aligning with the middle Bollinger Band, which previously acted as support during a pullback on November 25.

Outlook

While HBAR’s recent price surge is impressive, it is important to note that the cryptocurrency may face a price pullback due to its overbought condition. However, if the momentum continues, institutional interest driven by potential ETF approval and blockchain integration with federal payment systems could provide continued upward pressure.

As HBAR continues to gather attention from both whales and retail investors, its long-term prospects remain positive, though short-term consolidation may be likely as the market digests its recent gains.