Hedera Hashgraph’s token extended its decline on Tuesday as both crypto and stock investors stayed on the sidelines ahead of the upcoming Federal Reserve announcement.
Hedera Hashgraph (HBAR) price dropped for four consecutive days, reaching its lowest level since April 22. It has dropped by 15% from its highest point last week.
HBAR dropped as most cryptocurrencies pulled back, with their market cap dropping from over $3 trillion last week to $2.9 trillion today. Top American indices like the Dow Jones and the S&P 500 dropped by over 0.50%.
This price action reflects caution from market participants ahead of the Federal Reserve’s interest rate decision. Economists widely expect the central bank to hold rates steady at 4.50% as it waits for further inflation data. Any signal of a future rate cut would likely act as a bullish catalyst for HBAR and the broader crypto market.
You might also like: Best crypto to buy now as Bitcoin ETF inflows surge ahead of Fed decision
There are signs that activity in the Hedera Hashgraph chain is rising. DeFi Llama data shows that the stablecoin market cap in the chain has jumped to a record high of $130 million, a big increase from the year-to-date low of $37 million. Circle’s USD Coin (USDC) has a 99.8% market share in Hedera’s chain. This increase is a sign of robust in the network.
Hedera stablecoin market cap | Source: DeFi Llama
Another potential catalyst for HBAR is the SEC’s upcoming tokenization roundtable on May 12, which will feature representatives from major firms such as Franklin Templeton, BlackRock, and Invesco. The meeting will focus on regulating tokenized assets.
Hedera has emerged as one of the top chains in the real-world asset tokenization industry. For example, it partnered with Tokeny Solutions last week. Tokeny provides an onchain operating system for compliant asset tokenization.
HBAR crypto price prediction
HBAR price chart | Source: crypto.news
On the daily chart, HBAR rebounded on April 9, breaking above the upper side of a falling wedge pattern. It then rose to a high of $0.2020, which aligns with the 100-day Exponential Moving Average.
The bars of the Awesome Oscillator have pointed downwards and are about to cross the zero line. Also, the Relative Strength Index has formed a double-top pattern at 61.6, a sign that it is about to drop further.
Additionally, the MACD lines have made a bearish crossover. Taken together, these signals suggest that HBAR may continue to decline, with sellers targeting the year-to-date low of $0.1250. If reached, this level would form a double-bottom pattern, a potential reversal setup.
You might also like: Casper 2.0 launches on the mainnet, with a real world asset focus
