Hedera Hashgraph token, HBAR, has captured the spotlight in the cryptocurrency market by achieving an all-time high derivative trading volume of $6.31 billion. This surge in trading activity propelled HBAR’s price to $0.39, recording a decisive climb from its mid-November levels when both volume and market value were considerably lower.
The momentum began building in late November, as shown in the CoinGlass chart, where the volume steadily increased before hitting this ATH. On December 3, derivatives data revealed further bullish sentiment, with the cryptocurrency’s Open Interest Weighted Funding Rate reaching 0.0651%, indicating long position holders are willing to pay a premium to maintain their bullish bets.
Such a scenario hints at heightened confidence in the market, validating the bullish trend in the token’s price action. CoinMarketCap data aligns with this trend, highlighting a market cap of $12.47 billion and a 24-hour trading volume of $6.78 billion in the same timeframe. The sustained increase in spot and derivatives trading activity suggests the HBAR cryptocurrency is gaining market traction, with a $0.50 price target emerging as a realistic possibility this week.
HBAR’s Current Price Action
The altcoin’s price action tells a compelling story of resilience and recovery over the past year. On the weekly chart, it’s clear the token faced persistent downward pressure since hitting its $0.49 resistance back on November 8, 2021. This lengthy bearish sentiment eventually drove the cryptocurrency to a low of $0.355.
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For nearly two years, the token remained trapped in a stagnant, range-bound pattern—until mid-November, when it shattered this consolidation phase, soaring by 167% to achieve a 3-year high of $0.39. However, the rally has since cooled, with the token holding slightly above the vital 0.618 Fibonacci support at $0.3263, reflecting a 9.33% pullback in the last 24 hours.
What Factors Could Push HBAR to $0.50?
Hedera’s technical indicators reveal overbought conditions, suggesting a mixed outlook for its current price movement. The RSI, currently positioned at 88.76, reflects strong bullish momentum but also signals overextension, often a precursor to possible corrections. The DMI index supports this narrative, with the +DI surging at 66.4456, outpacing the -DI at 5.6557.
This disparity highlights an extreme buying frenzy in the HBAR market, typically unsustainable and often followed by profit-taking or pullbacks. If a correction unfolds, the cryptocurrency could revisit the 0.5 Fibonacci retracement zone at $0.26 for immediate support or even test the $0.18 zone, acting as a critical safety net. On the flip side, the bullish case hinges on HBAR breaking past its key resistance at $0.49 and securing a daily close above the 0.786 Fibonacci level at $0.3933.
This would set the stage for a rally to $0.50 and beyond, with $0.61—the 1.272 Fibonacci extension—emerging as a possible next target. However, this upward trajectory requires sustained trading volume and RSI levels remaining firmly in the overbought territory to confirm the momentum and increase the price.
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