Hedera has reached a three-year high, with monthly gains approaching 600%

Hedera (HBAR) has experienced an extraordinary surge, reaching a three-year high of $0.369 on December 7. This represents a remarkable 120% increase in just seven days, pushing its market capitalization above $12.78 billion. In addition, this recent rally has contributed to a massive 600% increase in Hedera’s value over the last month, making it one of the standout performers among the top 100 largest cryptocurrencies by market capitalization, according to data from CoinGecko. Alongside the significant price gains, Hedera’s daily trading volume has spiked by 140%, crossing $4.66 billion, further highlighting the momentum surrounding the asset.

This surge in Hedera’s price and trading activity is largely attributed to several key developments that have caught the attention of investors and the broader blockchain community

Blockchain community

Strategic Collaboration with SpaceX

One of the primary factors driving Hedera’s price surge is its recent collaboration with SpaceX, the space exploration company led by Elon Musk. This partnership involves the integration of Hedera’s blockchain technology into SpaceX’s space missions. The focus of this collaboration is to leverage Hedera’s blockchain for advanced data-tracking solutions. The deal has generated a significant amount of excitement in the market, with investors and analysts recognizing it as a major use case for Hedera’s technology, adding a new layer of real-world utility to the platform. The involvement of a high-profile entity like SpaceX has undoubtedly increased Hedera’s visibility and attractiveness to institutional and retail investors alike, further boosting its value.

Role in Federal Payment Systems

Another important development contributing to Hedera’s price surge is its involvement in blockchain-based federal payment systems. Specifically, Hedera’s platform is integrated with the Federal Reserve’s FedNow payment network. This system facilitates real-time payments in the U.S., and Hedera’s micropayment platform, Dropp, is now a part of the network, enabling transactions using HBAR. This integration marks a significant milestone for Hedera, positioning it as a key player in the evolving landscape of digital payments. As governments and financial institutions increasingly look for blockchain solutions to improve payment efficiency and transparency, Hedera’s role in such initiatives provides strong fundamental support for its future growth.

Speculation Around Hedera-Focused ETF

Traders and investors are also particularly optimistic about the potential approval of a Hedera-focused exchange-traded fund (ETF). Canary Capital recently filed an application with the U.S. Securities and Exchange Commission (SEC) for such an ETF, and speculation around its approval has grown. The excitement around the ETF has been fueled by reports suggesting that SEC Chairman Gary Gensler may step down, potentially leading to a more crypto-friendly regulatory environment under the incoming administration. Many believe that this could pave the way for more favorable ETF approvals, including the one for Hedera. If such an ETF were to be approved, it could provide an additional avenue for institutional investors to gain exposure to Hedera, potentially increasing demand for HBAR tokens and driving up the price further.

Increased Whale Activity

In addition to the broader market interest, the surge in Hedera’s price has been accompanied by significant increases in whale activity. Data from HederaWatch shows that the number of accounts holding between 100,000 and 100 million HBAR has increased sharply. Particularly notable is the rise in accounts holding more than 100 million tokens, which has grown by over 20% since August. This surge in whale activity often indicates that large institutional or high-net-worth individuals are accumulating significant amounts of HBAR, which can contribute to upward price pressure due to reduced available supply in the market. The involvement of whales often signals confidence in the asset’s long-term value, which further supports the bullish sentiment surrounding Hedera.

Retail Interest and Market Sentiment

Retail interest in Hedera has also seen a sharp increase in recent weeks, as reflected in Google Trends data and other market sentiment indicators. The HBAR Fear and Greed Index, compiled by CFGI, is currently at 84, signaling “extreme greed” in the market. This suggests that retail traders are eager to capitalize on Hedera’s recent price surge and are optimistic about its future potential. This kind of retail interest, especially when combined with the positive technical indicators, can drive further buying pressure, propelling the price of HBAR even higher in the short term.

Strong Technical Indicators

From a technical analysis perspective, Hedera’s price is performing exceptionally well. The daily chart shows that HBAR is trading well above both its 50-day and 200-day exponential moving averages (EMAs), which is a strong indicator of bullish market sentiment. The fact that HBAR is maintaining these levels suggests that buyers are in control and that the price could continue its upward trajectory in the near term. Additionally, the Moving Average Convergence Divergence (MACD) indicator further confirms the bullish trend, with the MACD line positioned above the signal line and both trending upward. This is a positive signal that the momentum is likely to continue as the bulls remain in control of the market.

Price Outlook and Future Targets

As of the latest data, HBAR is trading at $0.34, just shy of its recent high of $0.369. Based on the positive technical signals and the bullish market sentiment, the next likely resistance target for HBAR is the psychological $0.40 level. If the price breaks through this level, the next target could be $0.45, which would be a key level of resistance to watch. Some analysts, such as WSB Trader Rocko, have even suggested that HBAR could rally as high as $0.576, which would represent a 70% increase from its current price levels. If Hedera continues to capitalize on its strategic partnerships, increasing institutional interest, and bullish market sentiment, such a rally is not out of the question.

Hedera’s recent price surge is the result of a combination of factors, including strategic partnerships, growing institutional interest, and favorable technical indicators. The collaboration with SpaceX and its role in the FedNow payment network have significantly increased its real-world utility, while speculation around a potential Hedera-focused ETF and increased whale activity indicate strong confidence in the asset. Retail interest and positive market sentiment, as reflected in the Fear and Greed Index, further suggest that HBAR’s bullish momentum could continue. While the asset has seen impressive gains, investors should remain cautious of potential volatility and continue to monitor market conditions closely. However, with strong technicals and positive developments on the horizon, Hedera appears well-positioned for continued growth in the coming months.