Assessing why HBAR faces sell pressure despite its latest achievement
- Hedera’s TVL continued to decline and the condition of HBAR was worrying.
- The coin’s market indicators also favored the bears, predicting another downtrend.
hedera [HBAR] has reached a notable milestone in terms of network growth. In a March 26 tweet, Hedera announced that its mainnet has processed 6 billion transactions since its launch.
It was also interesting that Hedera was able to process 1 billion transactions in 17 days.
#Hedera Mainnet: 6 BILLION transactions
17 days; a billion transactions.#Hashgraph technology and our incredible, ever-growing community #web3 the real potential of #DLT powered by real applications and #utility.
👋See you at 7 – blink and you might miss it. pic.twitter.com/i8jyLstMfx
— Hedera (@hedera) March 26, 2023
Realistic or not, here is HBAR market cap in BTC terms
Problems are piling up on the Hedera network
This milestone was reached when Hedera faced an issue with its network on March 24th. According to Hedera Status, the team was investigating an issue where the GCS record stream was halted, which may have impacted mirrornode operators.
However, things were cleared up when the developers fixed the issue shortly after investigating.
Investigation: We are investigating an issue where the GCS data stream is halted, which could impact mirrornode operators. The Hedera managed testnet mirror node is not affected https://t.co/aFABlGnQ2F
— Hedera Status (@hashgraph) March 23, 2023
Despite this, Hedera’s health was still in question as her value was declining at press time. According to DeFiLlama, hederas TVL has fallen sharply over the past few days, which looked worrying for the network.
Source: DeFiLlama
Aggravating State for HBAR
HBAR, Hedera’s native token, also failed to benefit from the network’s recent achievement. Accordingly CoinMarketCap, HBAR traded nearly 4% lower than last week. At the time of writing, it was changing wallets at $0.06013 with a market cap of more than $1.8 billion.
Santiment’s chart showed that HBAR’s Binance funding rate has fallen sharply, indicating less demand from the derivatives market. Not only that, the token also dropped in popularity as evidenced by its declining social volume.
In addition, the development activity of the network was also affected. It is therefore questionable whether HBAR would benefit from Hedera’s success in the foreseeable future.
Source: Santiment
How many are 1.10.100 HBARs worth today?
Investors will have to wait longer for an uptrend
A similar bearish outlook for HBAR was also provided by its daily chart. The exponential moving average (EMA) band showed a bearish crossover. HBAR‘s Money Flow Index (MFI) declined sharply, moving below the neutral level.
Another bearish development was the Relative Strength Index (RSI), which turned sideways below the neutral level. Additionally, the Bollinger Bands revealed that HBAR’s price had been in a squeeze as of press time.
Thus, expectations of a sudden uptrend in the near future are being questioned. Nonetheless, the MACD slightly favored the bulls.
Source: TradingView