Hedera (HBAR) Price Drops by 3.32% with Downward Pressure

Key Highlights

• Hedera (HBAR) price fell by over 3.32% on Wednesday after the Federal Reserve decided to keep interest rates steady 
• The price fell below $0.095 while its Open interest in HBAR futures contracts has remained locked around $100 million
• The drops were also seen in the major cryptocurrencies like Bitcoin and Ethereum

On March 18, Hedera (HBAR) dropped by over 3.32%, forcing it to drop from $0.098 to $0.095 on a daily chart amid the major decision on the federal rate cut.

According to CoinMarketCap, this drop has forced the cryptocurrency to slip below the critical $0.10 psychological level, where it has struggled to maintain balance amid a drop in trading volumes.

HBAR Faces Downward Trend Amid Correction in Crypto Market

On Wednesday, the crypto market witnessed a mixed performance, with its total market capitalization revolving around $2.44 trillion after increasing 1% uptick. This drop is supported by positive United States macroeconomic data. However, HBAR was underperforming compared to other digital assets like ICP, which surged around 11.9%. 

Open interest in HBAR futures contracts has remained locked around $100 million, which shows trader certainty over the last 7 months according to Coinglass data. This extension in the reduced activity in the derivatives market is expected to reduce participation from larger players. This is also contributing to the token’s inability to regain upward momentum. 

The Federal Reserve’s recent decision to keep the rate cut steady has also created impact on the crypto market. In the FOMC meeting on March 18, the Federal Reserve declared that it will maintain a range between 3.5%-3.75%. The officials from the Federal Reserve mentioned that ongoing inflation pressure and the impact of geopolitical events, including the war with Iran, which increased oil prices, were the main reasons for keeping rates stable. This decision is also highlighting only one minor cut later this year. 

This macroeconomic decision has created caution in the crypto market, which recently gained bullish momentum. If the Fed cuts the rate, it is likely to boost investment in riskier assets like digital currencies.  

Not just HBAR, many major cryptocurrencies have witnessed a price drop as the Ethereum price is experiencing a drop of around 6.18% in response to the news. On the other hand, Bitcoin has also dropped by 4% in the same time period. 

The Relative Strength Index (RSI) is sitting around a neutral zone between 44 and 52, which means that the token is neither overbought nor oversold. However, it lacks strong buying momentum at this stage. 

At the same time, the Moving Average Convergence Divergence (MACD) indicator is giving a bearish sign because its line is moving in negative territory. This indicator is also showing there is slowing upward pressure and a possible continuation of downward prices in the near term. 

Hedera is currently trading below its 200-day moving average, around $0.15, while shorter-term averages are revolving around $0.10. This confirms that the longer-term trend still moves downwards for now. 

At present, there is a clear support level at $0.09 for Hedera, where buyers have taken place before. At the same time, the resistance is expected to sit at $0.10 and $0.11, where sellers could push back if the price tries to climb. 

The Hedera ecosystem is growing rapidly, as the recent major update is thelaunch of the Wyoming Frontier Stable Token, known as FRNT. This state government-backed stablecoin went live on the Hedera network just a few days ago.

The Wyoming Stable Token Commission selected Hedera for its impressive technical capabilities with an enterprise-grade infrastructure. 

Apart from this, the Securities and Exchange Commission and the Commodity Futures Trading Commission classified HBAR as a digital commodity alongside major assets on March 17. This will bring much-needed regulatory clarity for its ecosystem. 

Also, it puts HBAR in the same queue with assets like Bitcoin and Ethereum in terms of regulatory treatment, which opens doors for huge institutional participation. 

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