HBAR Becomes Top Loser with 20% Drop After SEC Chair Rumor Twist

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As a seasoned analyst with years of experience navigating the tumultuous waters of the cryptocurrency market, I find myself often struck by its uncanny resemblance to a rollercoaster ride – exhilarating highs followed by nerve-wracking drops. The recent plunge in HBAR‘s value serves as yet another reminder of this fact.

Hedera (HBAR) currently holds the title of greatest loser among the top 100 cryptocurrencies, with a 20% decline in value over the past 24 hours. This sudden price drop occurred shortly after an impressive rally that saw HBAR’s price surge by 180%.

According to BeInCrypto’s analysis, it appears that the significant drop in the market could be linked to increasing conjecture about who might replace the current US SEC Chair. Nevertheless, this is not the only element driving the market decline.

Hedera Slides in Several Areas Because of This

After Canary Capital submitted their initial application for an exchange-traded fund (ETF) involving HBAR, there was a noticeable increase in its price. This development signified a substantial achievement for Hedera, sparking enthusiasm among investors which led to an initial rise in value.

Instead, it appears that the significant increase in HBAR’s price might be primarily driven by speculation surrounding the possibility of Brian Brooks, a member of the Hedera board, being nominated as the next SEC chairman under President-elect Donald Trump.

Yesterday, November 19th, I found myself grappling with a shift in speculation. Some digital news outlets started to hint that legal expert Teresa Goody Guillen might be the leading contender for a significant role in the crypto world. This rumor seemed to have an immediate impact on HBAR’s price, causing it to plummet by about 20%.

Over time, the total value of HBAR derivative contracts has decreased from approximately $120 million to about $100.95 million.

The decrease in Open Interest (OI) indicates a drop in speculative trading, since fewer individuals are opening fresh positions. This lessened speculation can also result in lower market liquidity, hinting that the cryptocurrency might find it challenging to maintain its current upward trajectory.

Furthermore, the optimistic feelings towards the project have recently diminished, where before they were growing. Usually, an increase in positive sentiment signifies a spike in favorable discussions regarding the cryptocurrency.

On the other hand, the recent downturn in sentiment seems indicative of a decline in optimistic conversations. If this pattern continues, it might add more pressure for HBAR’s price to advance significantly in the near future.

HBAR Price Prediction: Bearish

Technically speaking, the decrease in HBAR’s price might be due to it being overbought. This suggestion comes from the Relative Strength Index (RSI), a tool that gauges momentum, signaling that the altcoin had been bought too aggressively and was due for a correction.

In addition to tracking momentum, the Relative Strength Index (RSI) helps determine whether a cryptocurrency is excessively bought or sold. Specifically, when the value surpasses 70.00, it suggests overbuying, while values below 30.00 indicate overselling.

Based on current trends, there’s a strong possibility that the price of HBAR could decrease from around $0.13 to approximately $0.095. But if buying interest picks up again for this altcoin, the forecast might shift. If that occurs, the price of HBAR could potentially rise to $0.016.

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2024-11-20 13:31