- 7 days ago, Hedera Hashgraph’s HBAR soared to a yearly high of $0.17.
- BlackRock’s rebuttal of intervention was added to HBAR’s sharp revision.
- Now the widening of the Bollinger Bands suggests further price volatility for HBAR.
Hedera Hashgraph’s (HBAR) fairytale run over the past week is set to come to a halt as the 60% gain for the 30th largest cryptocurrency by global market cap has all but evaporated. However, after charging $0.1761, Layer-1’s underlying HBAR plunged another 9% this Tuesday, experiencing six consecutive days in the red.
BlackRock’s Misconception About RWA Tokenization
The sharp decline comes after BlackRock refuted statements that it was directly involved in deploying ICS U.S. Treasury money market funds (MMFs) on Hedera’s blockchain. It is actually a partnership between the HBAR Foundation and Archax, the first FCA regulated digital asset exchange and cryptocurrency broker.
Despite the misconception that BlackRock was directly involved in the launch of HBAR’s Real World Assets (RWA), many cryptocurrency traders believed so, and on April 24, 2024, trading volume surged to $2.6 billion in the spot market. Meanwhile, the Hedera Foundation added $5 billion worth of tokenized real-world assets (RWA) to the Hedera Hashgraph chain.
According to the HBAR Foundation’s message to The deal also includes a fully ERC-20 compliant security package based on the EVM-compatible Hedera Smart Contract Service (HSCS). It is estimated that tokenized RWA will have a market value of $10 trillion by 2030.
Can HBAR climb back up the ladder?
With the recent 8.3% 24-hour decline, Hedera is at risk of plummeting to $0.07, according to machine learning forecasts from the Bullish Banter Society. However, other traders are more optimistic about HBAR’s price trajectory as Hedera Hashgraph is one of the fastest layer 1 chains, recording up to 3,287 transactions per second.
From a technical perspective, Hedera’s curve hints at greater turmoil for altcoins. For example, the Chaikin Money Flow (CMF) indicator turned negative at -0.20, favoring the downside. A negative CMF index suggests slowing inflows, so the merciless downturn could continue for longer.
Meanwhile, the derivatives cryptocurrency market signals a 5.5% decline in open interest (OI), which could indicate whether demand will remain strong or die off. With $1.13 million worth of HBAR long positions liquidated in the last 24 hours, the current bid-to-ask ratio is 0.9175.
This indicates that short sellers or bears are outsourcing cryptocurrency bullishness from their entire HBAR positions in the derivatives market. The extensive length of the Bollinger Bands also suggests further HBAR price action. HBAR is trading at $0.0944 at press time, down 9% in the last 24 hours.
On the flipside
- Despite completely reversing the 60% bull market associated with the tokenization of money market funds (MMFs) in BlackRock products, HBAR remains one of the only positive performers among altcoins on a weekly basis, with a 3% gain.
Why This Matters
Tokenization of real world assets (RWA) is the latest global trend across various technology fields, including blockchain and artificial intelligence.
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