Hedera Hashgraph's Steep Decline Sparks Retracement Fears

Hedera Hashgraph has witnessed a consistent decline over the past six days, retracing towards its previous price range. After a significant surge triggered by a later-retracted announcement, HBAR experienced consecutive decreases, coinciding with a clarification from Archax CEO. Volume and market cap have also declined, and Open Interest suggests waning interest in Hedera Graph.

Hedera Hashgraph's Rapid Decline Raises Concerns of Retracement

After a six-day consecutive price decline, the cryptocurrency Hedera Hashgraph (HBAR) faces a potential retracement to its previous price range. The recent surge in HBAR's value, which reached one of its highest points in months, has been met with a wave of selling, wiping out the initial gains.

HBAR's Volatile Price Trajectory

Hedera's daily price trend has exhibited a rollercoaster-like pattern. From April 20th to 22nd, the price remained relatively stable between $0.08 and $0.09. However, on April 23rd, HBAR experienced a surge of unprecedented proportions, surging by a staggering 73.65% to reach $0.15. This parabolic rise was driven by an announcement from the Hedera Foundation regarding a significant tokenization move involving Blackrock.

The surge was short-lived, as the price began to decline on April 24th. A 20.58% drop brought HBAR back to $0.12, marking the beginning of a series of consecutive decreases that have dropped the price back to its pre-surge level. Coincidentally, this decline coincided with a clarification from Archax CEO Graham Rodford regarding the Blackrock announcement.

Despite the significant price downturn, HBAR has maintained a bullish trend, albeit weakening. Its Relative Strength Index (RSI) continues to hold above the neutral line, indicating that there is underlying buying pressure despite the recent sell-off.

Massive Volume and Market Cap Decline

Volume metrics provide further insight into HBAR's recent price movements. Santiment data reveals significant volume spikes coinciding with the major price swings. The surge in price on April 23rd was accompanied by a volume spike to over $1 billion from an average of $50 million. Similarly, the price decline on April 24th saw volume surge to over $3.5 billion before gradually decreasing. As of the latest update, volume was around $135 million. CoinMarketCap data indicates a nearly 7% decrease in volume over the last 24 hours.

Market capitalization has also experienced notable fluctuations aligned with price movements. During the surge of over 70%, the market cap rose sharply from around $3.2 billion to over $6 billion. As of this writing, the market cap sits around $3.6 billion, marking a nearly 2% reduction in the past 24 hours.

Waning Interest in Hedera

The surge in HBAR's price attracted a significant influx of cash flow, as evidenced by the Open Interest metric on Coinglass. This metric soared to over $147 million by April 25th. However, interest has since waned, with Open Interest dropping sharply. As of this writing, Open Interest is around $80 million, suggesting a significant decline in cash flow into HBAR.

This decline in Open Interest points to a dwindling interest in Hedera Graph, signaling a potential end to the asset's brief period of positive momentum.

Conclusion

Hedera Hashgraph's recent price decline has raised concerns among investors. The rapid retracement from its recent highs, coupled with declining volume and interest, suggests that HBAR could be poised for a further pullback. While the cryptocurrency still maintains a bullish trend, according to its RSI, the weakening momentum and fading interest cast doubt on the sustainability of the recent surge. Traders and investors should monitor Hedera's price action closely and be prepared for potential volatility in the coming days and weeks.