HBAR Price Prediction: Hedera (HBAR) Suffers 20% Loss Amidst SEC Chair Nomination Rumors

Hedera (HBAR) has become the top loser among the top 100 cryptocurrencies, experiencing a dramatic 20% drop in price over the last 24 hours.

Hedera (HBAR) has experienced a significant price drop of 20% over the last 24 hours, making it the biggest loser among the top 100 cryptocurrencies. This sharp decline comes after a period of strong rally, where HBAR surged by 180%.

The recent downturn appears to be largely driven by shifting rumors regarding the potential appointment of the next U.S. SEC Chair. Initially, speculation pointed towards Hedera board member Brian Brooks, a move that was expected to benefit the cryptocurrency industry. However, the latest reports suggest that crypto lawyer Teresa Guillen is now the leading candidate for the role.

This sudden change in expectations has sparked a sell-off among HBAR holders, leading to the dramatic price drop. The rumors surrounding Brooks' potential appointment had generated optimism and hopes for more favorable regulations, which directly impacted HBAR's price.

But now, with Guillen emerging as the frontrunner, those expectations have shifted, and the enthusiasm around Hedera has waned. This change in sentiment, combined with the technical indicators suggesting the cryptocurrency was entering overbought territory, may have contributed to the sharp price drop.

Moreover, the recent downturn is also evident in a decrease in speculative trading activity. According to data from Santiment, Hedera's open interest (OI) in derivatives saw a noticeable decline, dropping from $120 million to $100.95 million.

Open interest is a key indicator of the amount of speculative activity in the market; a decrease typically suggests that traders are becoming less active or closing out their positions. Reduced open interest often results in diminished liquidity, making it harder for the asset to sustain price movements, especially in a volatile market like cryptocurrencies.

This decrease in speculative activity has left HBAR vulnerable to further downside pressure, as traders seem to be exercising caution in light of the uncertainty surrounding regulatory changes and leadership in the SEC.