Hedera Hashgraph (HBAR) price made a strong bullish breakout as investors cheered its strong ecosystem growth. The token jumped sharply on Monday, making its best day in months. This rally pushed it to a high of $0.1175, its highest point since May 9th of this year.
Ecosystem is booming
The main reason why HBAR price has surged is that it is in a close correlation with other cryptocurrencies in the market. A closer look at CoinMarketCap shows that most altcoins have rallied in the past few weeks. Bitcoin sits above $52,000 while Ethereum has roared back to almost $3,000. In most cases, digital coins tend to have a close correlation with each other.
Meanwhile, there are signs that the Hedera Hashgraph ecosystem is starting to boom. Data compiled by DeFi Llama shows that the Total Value Locked (TVL) in Hedera has jumped to more than $169 million. In most cases, this is one of the most important measurements of an ecosystem growth but it is not always perfect.
Most of these gains are because of SaucerSwap, the biggest DEX in the ecosystem. The network’s TVL has jumped to over $129.25 million, a 78% monthly increase. Further data shows that the volume of transactions in the network has jumped in the past few weeks.
According to CoinGecko, SaucerSwap V2 handled tokens worth over $13 million in the past 24 hours. The V1 platform, on the other hand, handled over $8 million in tokens in the same period. And a closer look at these flows shows that they are rising.
SaucerSwap is not the only part of Hedera Hashgraph that is doing well. Stader, a liquid staking in the ecosystem, has seen its DeFi TVL surge by over 32% in the past 7 days to $37 million. Liquid staking is an important technology that makes it easier for people to stake their tokens and earn rewards.
Hedera Hashgraph governance
The other crucial reason why the HBAR price has broken out is that Hedera Hashgraph’s governance has gotten much bigger in the past few months. Earlier this year, Hedera welcomed Hitachi US as part of its governance council. This is notable because Hitachi is one of the biggest industrial companies in the world. Its parent company is the 11th biggest company in Japan with a market cap of over $75 billion.
Most recently, Mondelez also joined the council. Mondelez is not a name many people have heard before but millions of people eat its products every day. It owns brands like Oreo cookies, Cadbury, Stride, and Wheat Thins.
These two companies join other international companies like Google, LG, Ubisoft, Bomura, and Worldpay. These firms are selecting Hedera because of its carbon neutrality, quick transaction speeds, and low costs.
HBAR price forecast
Turning to the daily chart, we see that the HBAR token price staged a strong bullish breakout as it continued to trend in social media. As it jumped, the coin soared above the key resistance point at $0.10, its highest point on January 2nd. As I wrote on Jasmy, this movement saw it invalidate the double-top pattern that has been forming recently.
Hedera Hashgraph has moved above the Supertrend indicator, which is a bullish sign. The Stochastic Oscillator has remained slightly above the overbought level. Therefore, the outlook for the HBAR price is that it will likely retest the support at $0.10 and then resume the bullish trend. This price action is known as a break and retest pattern.
