- Hedera Hashgraph coin has moved to an important level of support.
- Bitcoin is expected to stage a strong recovery later this year.
- Hedera is growing among enterprises like IBM, LG, and Google
Hedera Hashgraph (HBAR) price is sitting at an important support as the recent sell-off eases. HBAR was trading at $0.058 on Thursday, the lowest level since March 11. In all, Hedera has plunged by over 40% from its highest level this year. Here are three reasons why it could jump soon.
Bitcoin could lead the way
The main reason why I expect Hedera to bounce back is that I am bullish on Bitcoin. Bitcoin is hanging slightly below the important resistance at $30,000 and analysts believe that it will surge in the coming months. An analyst at Standard Chartered recently predicted that it will rise to $100k. Similarly, Mike Novogratz of Galaxy Digital believes that it could rise to $67,000.
Meanwhile, Changpeng Zhao of Binance cited the fact that Bitcoin tends to rally ahead of halving. The next halving event will happen in 2024. Further, the collapse of key banks like Credit Suisse, PacWest, First Republic, and Silicon Valley Bank will be positive for Bitcoin.
Bitcoin and Hedera Hashgraph are significantly different. However, historically, HBAR and BTC tends to have a close correlation. Therefore, if Bitcoin rises, there is a likelihood that Hedera will jump as well.
Federal Reserve decision
The other reason why Hedera Hashgraph will rise is that the Fed has reached the end of its hiking cycle. On Monday, the Fed decided to hike interest rates by 0.25% to 5.25%.
While Jerome Powell did not admit it, analysts believe that the bank will need to pause since things are already breaking. The banking sector and commercial real estate sectors are at a major risk. As such, it will be unfathomable for Powel to hike in a period of a recession. This explains why the US dollar index has retreated recently.
Hedera and other cryptocurrencies tend to do well when the Federal Reserve is going slow on interest rates.
Hedera Hashgraph price technicals are supportive
The other reason why HBAR price could rise is that technical indicators are supportive. As shown below, Hedera has found a strong support at $0.058, where it struggled to move below recently.
The coin has formed what looks like a double-bottom pattern whose neckline is at $0.077. A double-bottom is usually a bullish sign. Therefore, we can’t rule out a situation where HBAR stages a comeback. However, a break below this double-bottom point will signal that bears have prevailed.
Hedera Hashgraph adoption
Finally, HBAR price will be supported by growing adoption by corporates. Already, Hedera Asssociation has inked deals with the likes of Tata, LG, Google, and IBM. This means that these companies will use Hedera to build their blockchain apps.
This week, Hedera announced that it had hired Heran Shah, the former IBM marketing head as the new business development lead. His goal will be to help the network grow among enterprises.
