Hedera's HBAR token saw a significant 10.05% price drop over the past 24 hours, falling from $0.05931 down to $0.05337 at the time of writing. This steep decline brings HBAR's market capitalization down to $1.81 billion, making it the #25 ranked cryptocurrency by market cap.
Let's analyze the key data points behind this latest price movement for HBAR traders:
Over the past 1 hour, HBAR has shed 5.23% against the US dollar, indicating strong short-term bearish momentum. The 24-hour trading volume remains elevated at $134.74 million, suggesting panic selling in the market.
Bleeding Out from Local Highs
HBAR hit a local high of $0.06925 just two days ago on July 21. Since then, the price has plunged 23.01%, creating a pattern of lower highs and lower lows. This signals that HBAR is in a short-term downtrend.
Breaking Critical Support Levels
Yesterday, HBAR broke below the key psychological support at $0.06. Today, HBAR sliced below the 50-day moving average which stood at around $0.057. With HBAR trading well below these critical support levels, further downside looks likely.
Long-Term Accumulation Zone Holding
Zooming out to the 6-month timeframe, HBAR is still trading above the long-term support zone between $0.045 and $0.05. As long as bulls can defend this zone, the long-term uptrend remains intact. However, a daily close below $0.045 would invalidate this and may trigger capitulation.
Opinion: HBAR Likely to Bounce After Capitulatory Selling
In my opinion, this steep selloff looks capitulatory in nature and has likely shaken out a lot of weak hands. With HBAR still trading above key long-term support, I expect bulls to step back in soon for bargain hunting. This could lead to a sharp relief bounce back up to $0.06 in the coming days.
However, if bearish momentum persists and HBAR breaks below $0.045, the downtrend would extend towards the next major support zone around $0.035. Traders should watch these levels closely.
Is Hedera's HBAR a Good Long-Term Investment?
With HBAR down over 25% in the past 6 months, many investors are questioning if it's still a good long-term investment. Here are two key factors to consider:
Firstly, HBAR offers fast transaction speeds and robust enterprise adoption. Major corporations like Google, IBM and Boeing are building applications on Hedera's network. As real-world usage grows, so can HBAR's value long-term.
Secondly, HBAR is still early in its cycle compared to older cryptos like Bitcoin. It has plenty of room to capture value as the crypto market matures. However, short-term volatility remains a risk that long-term investors must be willing to stomach.
Overall, Hedera's strong technology and growing ecosystem make HBAR a high-potential investment for the long run. But only invest money you can afford to lose, and brace for short-term swings along the way.
How Does HBAR Stack Up Against Competitors Like Solana?
As a smart contract platform, Hedera faces competition from networks like Solana. Here's how HBAR compares:
Firstly, HBAR has greater speed - achieving 10,000+ transactions per second (TPS) compared to Solana's theoretical max of 65,000 TPS. This makes HBAR better for large-scale applications.
However, Solana has much higher developer activity and Total Value Locked currently. Solana's ecosystem is more vibrant and proven, giving it an edge.
Importantly, Hedera is more decentralized than Solana. HBAR has 39 trusted enterprises running nodes, while SOL is more centralized on fewer nodes. This gives HBAR an advantage for security.
In summary, while Solana is ahead in adoption currently, HBAR has technical advantages that could help it close the gap long-term. But Solana's developer network effects cannot be ignored either. Overall, HBAR looks solid when compared to competitors.