Hedera hits 3-year high, monthly gains near 600%

Hedera has gained over 120% in the past seven days, hitting a three-year high of $0.369 on December 7, pushing its market capitalization to over $12.78 billion.

The recent rally pushed the altcoin’s monthly gains to nearly 600%, making it the best-performing cryptocurrency among the top 100 cryptocurrencies by market cap, according to data from CoinGecko.

Hedera’s (HBAR) daily trading volume also increased by 140% to over $4.66 billion. This rally coincided with a jump in open interest in futures. CoinGlass data shows open interest on HBAR’s futures market reached a record high of $459.87 million, marking a significant increase from November’s low of $32.8 million.

Why does Hedera go up?

The latest price increase was largely due to Hedera’s collaboration with Elon Musk’s SpaceX. This partnership involves integrating Hedera’s blockchain technology into SpaceX’s space missions, focusing on advanced data tracking solutions.

This development created excitement among investors and the blockchain community. See below.

I can’t believe no one is talking about Hedera #HBAR partnered with #Spacex will launch a satellite into orbit this JANUARY #Hedera Hashgraph’s HBAR cryptocurrency.

This is a first.
This is something historical.
This is mind blowing.
This is true blockchain innovation.
This… pic.twitter.com/e8OLJ9RiGV

— Erik Rolf Pettersson (@pettersson_usa) December 5, 2024

Another catalyst for the rise is Hedera’s role in blockchain-based federal payment systems. The Federal Reserve’s FedNow payment network has increased its service coverage by integrating Dropp, a Hedera-based micropayment platform that enables transactions using HBAR.

Traders are also optimistic about the possibility of a Hedera-focused exchange-traded fund. Canary Capital recently filed for this ETF with the U.S. Securities and Exchange Commission, and speculation has intensified with reports that SEC Chairman Gary Gensler will resign. Some believe approval will likely happen under the incoming Trump administration.

Recent developments have also attracted the attention of whales. Data from HederaWatch reveals a sharp increase in accounts held between 100,000 and 100 million HBAR.

Particularly notable is the growth in accounts holding more than 100 million tokens, which has increased by more than 20% since August.

Meanwhile, retail interest in HBAR has increased in recent weeks, according to Google Trends data. This increase in interest coincides with data from CFGI’s HBAR Fear and Greed Index, which currently sits at 84, indicating extreme greed.

Google Trends data shows a significant increase in search interest for HBAR in December 2024 | Source: Google Trends

Based on these metrics, traders appear eager to capitalize on potential gains by further increasing HBAR’s price momentum.

HBAR price with strong technicals, 50-day and 200-day EMA chart — December 7 | Source: crypto.news

On the daily chart, HBAR price is trending above the 50-day and 200-day exponential moving averages, indicating that the bulls are still in control, adding to the buying pressure that has led to the recent rally.

HBAR MACD chart — December 7 | Source: crypto.news

The Moving Average Convergence Divergence indicator confirms this trend, with both the MACD line positioned above the signal line and pointing upwards, indicating a strong uptrend.

At the time of writing, HBAR was trading at $0.34 and based on positive signals, the next possible target for the token could be the psychological resistance of $0.40, beyond which it can be expected to secure the $0.45 limit.

However, according to analyst WSB Trader Rocko, HBAR could rise to $0.576, a potential 70% increase from current price levels.