Hedera (HBAR) emerged among the top gainers across the crypto market today, November 24, with a 10% gain in 24 hours to trade at $0.146. The rally has drawn interest from analysts, with some suggesting the token could be setting up for a potential 133% move. With momentum building and sentiment improving, what may be driving the Hedera price rally?
3 Reasons Behind the Hedera Price Rally Today
As the broader crypto market shows some signs of strength, several factors appear to be driving the Hedera price surge today. These include:
- Bullish market sentiment
- Rising institutional interest
- Broader market recovery
Bullish Market Sentiment
HBAR has been among the worst-hit tokens by the recent crypto market crash. Since November 10, the price has dropped by more than 26%. However, after forming its biggest green candle in two weeks, the market sentiment now appears to be shifting.
Data from CoinMarketCap shows that in just 24 hours, HBAR trading volumes surged by more than 200% to $526 million. This rise could indicate rising conviction among traders, signalling that the bullish sentiment is accelerating rather than fading. If more buyers are stepping in, the ongoing rally will likely continue.
On the derivatives market, a similar spike in activity is evident. Data from Coinglass shows HBAR futures volumes climbing 159% to $520 million, while open interest rose by 15%. The growing participation from derivatives traders often amplifies volatility, which in turn can accelerate price movements and help sustain the ongoing rally.
The bullish market sentiment is also evidenced by analysts, with the majority forecasting that the rally will continue. Analyst Alice Crypto notes that if the price of Hedera breaks out of a descending parallel channel, it might soar by 133% to $0.33.
Another trader dubbed Aman on X also opined,
“Hedera Hashgraph just smashed its descending trendline. The downtrend is officially over. Full bullish momentum and major reversal potential confirmed!”
If the bullish sentiment continues, it supports the bullish thesis that the HBAR price might continue with the upward trend.
Rising Institutional Interest Drives Hedera Price Gains
Interest from institutions may also be another catalyst driving the Hedera price rally. Data from Canary shows that the HBAR exchange-traded fund (ETF) has accumulated more than 421 million HBAR tokens as net assets. The coins are worth more than $54 million at the current price.
The Canary HBAR ETF started trading on October 28 after receiving regulatory approval from the US Securities and Exchange Commission (SEC). Its approval saw it become the second altcoin ETF in the US.
Analyst Rose Premium Signals also observed that Hedera’s “macro structure says accumulation, not distribution,” adding that it could be on the verge of a big reversal.
Broader Market Recovery
The HBAR token may also be gaining because of the broader market recovery. Over the past 24 hours, the total crypto market capitalisation rose above $3 trillion, according to CoinMarketCap, with Bitcoin and most altcoins trading in the green.
If bulls regain control of the price movements, Hedera will likely continue to move higher. However, if the market sentiment shifts again in favour of bears, HBAR price may drop further.
What’s Next for HBAR Price?
The weekly chart shows that Hedera has created a triple bottom pattern. The price has tested the $0.12 support level three times without breaking lower, indicating that buyers are consistently defending this zone.
If HBAR price makes a strong bounce from this support level again, the first resistance lies at $0.184. Overcoming this level may pave the way for an extended rally to $0.229.
However, for this bullish thesis to play out, the price of Hedera needs to move above the 50-day SMA level of $0.21. If this happens, it will confirm that the short-term trend has flipped bullish, and the upward trend could continue. At press time, HBAR traded below this SMA.
Additionally, the RSI remains at 39, showing that despite recent gains, selling pressure remains higher than the buying pressure. This metric shows that a bearish momentum is in play, which could derail recovery.
Hence, while Hedera price is showing gains today, sustained buying pressure is required to break through key resistance levels. If the current trend reverses into a bearish move, support at $0.12 could be breached, which would invalidate the triple bottom pattern.
