While the global cryptocurrency market cap slipped by 0.20% over the past 24 hours, one altcoin delivered a stand out performance during this period. Hedera (HBAR) experienced a double-digit price surge during the past day of trading, according to CoinMarketCap. Subsequently, the cryptocurrency was able to claim the title of the biggest daily gainer - surpassing both THORChain (RUNE) and Toncoin (TON) in this regard.
HBAR Daily Performance Overview
At press time, the altcoin was changing hands at $0.07128 following an impressive 12.27% 24-hour gain. In addition to the increase in price, HBAR’s daily trading volume also surged 193.28%. As a result, the total 24-hour trading volume for the altcoin stood at $308,400,172.
Meanwhile, the altcoin was also trading very close to its 24-hour high of $0.07205, while its daily low sat at around $0.06302. This suggested that some traders and investors had taken their profits from the recent spike in HBAR’s price.
With a market cap of $2,365,092,91s, HBAR was ranked as the 30th biggest cryptocurrency in this regard. This positioned it below Ethereum Classic (ETC) and above Filecoin (FIL), both of which suffered 24-hour losses of 0.99% and 1.21% respectively.
HBAR Gets Included in FedNow
In a monumental development that highlights the growing traction of distributed ledger technologies (DLT) in conventional finance, the US Federal Reserve has welcomed Dropp, a platform based on the Hedera Hashgraph (HBAR), as one of its service providers for the groundbreaking FedNow service. This latest development is the sole contributor to HBAR’s remarkable price performance over the past 48 hours.
The launch of the FedNow Service in July 2023 represents a significant stride towards establishing a robust infrastructure for instantaneous payments. This initiative responds to the evolving demands of the modern economy, wherein the need for real-time financial transactions has become paramount. The Federal Reserve's announcement emphasized that the FedNow Service enables businesses and individuals to conduct instantaneous payments around the clock, every day of the year, through participating financial institutions.
Of particular note is Dropp's inclusion in the FedNow service provider list. Dropp is a trailblazing platform that offers a dual function: it processes customer credit transfers and manages incoming payments. This distinctive dual capability potentially positions Hedera Hashgraph's technology at a pivotal juncture within the rapidly evolving landscape of real-time payments.
Sushil Prabhu, the CEO and Chairman of Dropp, commented on the evolution of micropayments, highlighting that while the concept has existed since the late 1990s, recent advancements in the digital economy, consumer requirements, and technological maturity have rendered micropayments both technically and economically feasible.
To fully grasp Dropp's value proposition, it's essential to comprehend its fundamental role in the FedNow ecosystem. Essentially, Dropp functions as a payment platform that facilitates both FedNow and Real Time Payment transactions through financial institutions. Far from being a passive participant, Dropp actively streamlines real-time transactions by acting as a connective bridge between the network and financial institutions. This strategic positioning could potentially make Dropp an indispensable conduit linking traditional banking systems with the cutting-edge capabilities offered by distributed ledger technologies.
The technology underpinning Dropp, Hedera Hashgraph, boasts a distinctive blend of speed, security, and cost-effectiveness. With an impressive transaction throughput surpassing 10,000 per second and a remarkably short settlement time of 3-5 seconds, Hedera distinguishes itself in the competitive DLT landscape. Sushil Prabhu noted that utilizing Hedera as their distributed ledger solution reduces Dropp's technology footprint, rendering the platform highly cost-effective.
Furthermore, Dropp's decision to adopt Hedera Hashgraph likely stems from the predictably low transaction fees associated with stablecoins and HBAR transactions on the platform, each amounting to less than $0.001 USD. This economic framework is critical for facilitating genuine micropayments, particularly for transactions involving modest values.
As DLT gains momentum and real-time payments become a necessity in modern financial ecosystems, Dropp's integration into the FedNow service stands as a testament to the strides that distributed ledger technologies have made in traditional finance. The cooperation between Dropp and the Federal Reserve underscores the capacity of innovative solutions to bridge the gap between established financial systems and emerging technological advancements.
Levels to Watch for the Coming Week
Daily chart for HBAR/USDT (Source: TradingView)
From a technical standpoint, HBAR was able to break above an ascending price channel that had formed on its daily chart throughout the last few weeks. In addition to this, the altcoin’s price was also able to rise from the key support level at $0.0570 to overcome the major resistance levels at $0.0645 and $0.0701 over the past 48 hours.
The cryptocurrency continued to trade above the $0.0701 price point, and may flip the level into support during the coming 24 hours. If HBAR closes today’s daily candle above this resistance level, then it may have a clear path to rise to the next key price point at $0.0835 in the upcoming week.
However, if traders and investors begin to take profit during the next 48 hours, then HBAR’s price may be at risk of dropping back below $0.0701. In this scenario, continued sell pressure may bring the altcoin’s price down to the aforementioned $0.0645 mark as well, which is also the upper level of the previously-mentioned positive price channel.
One thing to take note of is the fact that HBAR’s price entered into a medium-term positive cycle during the last 2 days of trading. At press time, the 50-day EMA line was positioned above the longer 100-day EMA line after the two technical indicators crossed yesterday. Therefore, the cryptocurrency’s price may continue to rise as a result of momentum swinging in favor of bulls.
Weekly chart for HBAR/USDT (Source: TradingView)
Meanwhile, the weekly chart for HBAR/USDT supports a long-term bullish outlook for HBAR and suggests that the altcoin may enter into a multi-month bull run in the coming couple of weeks. Most notably, the 9 and 20 EMA lines on the weekly chart were on the cusp of crossing bullishly. Should these two technical indicators cross, it will signal that HBAR’s price has entered into a long-term bullish cycle. Furthermore, a symmetrical triangle chart pattern had also formed on the cryptocurrency’s weekly chart, which suggested that a breakout in the coming few weeks is imminent.
This week’s weekly candle will give an early indication as to which direction HBAR’s price will move in the next few weeks. If this week’s weekly candle closes above the upper range of the symmetrical triangle pattern at around $0.0772, then the bullish thesis will be validated.
Traders and investors may look to recover some of their losses from the ongoing bear market, however, which may result in some sell pressure entering into HBAR’s chart. This potential decline in HBAR’s price may not be a reason for concern as the bullish move could still be in play as long as the altcoin’s price remains above $0.0645 for the next 2 weeks.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
