- 7 days ago, Hedera Hashgraph’s HBAR soared to yearly heights at $0.17.
- BlackRock’s rebuttal of involvement added to HBAR’s sharp correction.
- Now, widening Bollinger Bands hints at further price volatility for HBAR.
Hedera Hashgraph’s (HBAR) fairytale run last week is coming to a halt as the #30 crypto by global market cap evaporated all of the 60% gains. However, after claiming $0.1761, Layer-1’s native HBAR faced six days of consecutive deficit, plunging further by 9% this Tuesday.
BlackRock Misconception on RWA Tokenization
The rapid downturn comes after BlackRock refuted the statements that they had direct participation in deploying ICS U.S. Treasury money market fund (MMF) on Hedera’s blockchain, as it actually was a partnership between HBAR Foundation and Archax, the first FCA-regulated digital asset exchange and crypto broker.
Despite the misunderstanding that BlackRock was directly involved in the Real World Asset (RWA) launch on HBAR, many crypto traders believed so, leading to skyrocketing trading volume on April 24, 2024, at $2.60 billion on Spot markets. Meanwhile, the Hedera Foundation added another $5 billion worth of tokenized real-world assets (RWA) to their Hedera Hashgraph chain.
According to HBAR Foundation’s message on X, this signifies a global trend of rapid tokenization of “traditional industries like real estate, fund management, and art.” The deal also includes a security package with full ERC-20 compliance based on the EVM-compatible Hedera Smart Contract Service (HSCS). Tokenized RWA is estimated to have a $10T market value by 2030.
Can HBAR Climb Back Up the Ladder?
The latest 8.3% 24-hour downturn puts Hedera at risk of plummeting to $0.07, as projected by the Bullish Banter Society’s machine learning prediction. However, other traders are more optimistic about HBAR’s price trajectory due to Hedera Hashgraph being one of the fastest Layer-1 chains, with 3,287 transactions per second recorded at maximum.
On the technical side, Hedera’s curve hints at more turbulence for the altcoin. To illustrate, the Chaikin Money Flow (CMF) indicator turned negative at -0.20, favoring the bears. As a negative CMF index hints at slowing inflows, the merciless bears could stay longer.
Meanwhile, Derivatives crypto markets signal a 5.5% drop in Open Interest (OI), which tells us if the demand is going strong or fading away. With $1.13 million in liquidated long HBAR positions over the past 24 hours, the current long versus short ratio is 0.9175.
This indicates that the short sellers, or bears, outsource the crypto bulls in overall HBAR positions on Derivatives markets. The extensive length of Bollinger Bands also hints at further HBAR price fluctuations. HBAR trades at $0.0944 as of press time, dropping by 9% over the past 24 hours.
On the Flipside
- Despite fully retracing the 60% bull run linked to the money market fund (MMF) tokenization of BlackRock’s products, HBAR remains one of the only positive performers among altcoins on a weekly basis with 3% gains.
Why This Matters
Real World Asset (RWA) tokenization is the latest global trend across various technology sectors, including blockchain and artificial intelligence.
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