Hedera is a decentralized distributed network that implements its distributed open ledger on hashgraph technology instead of blockchains. HBAR is the utility token of the Hedera network, which has weakened more than 40% since November 05, falling from $0.064 to a low of $0.036.
Hedera is based on security and validation algorithms that are more efficient than those used on blockchain networks. The current price of HBAR stands at $0.037, which is more than 85% off from its 2022 highs that were registered in January.
But where is the price of Hedera (HBAR) going next, and what can we expect from January 2023?
Today, Crypto Lists will discuss Hedera (HBAR) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you have if trading with leverage.
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Hedera is one the most used enterprise-grade public network on which anyone can transact and deploy applications, but where a group of businesses oversees the software. Hedera is governed by a body known as the Hedera Governing Council, and as of 2020, a total of 39 members sit on the council, including Google, IBM, Boeing, Deutsche Telekom, DLA Piper, FIS WorldPay, LG, Magalu, and Nomura.
The council’s role is to manage the software, vote on changes, ensure funds are allocated correctly and safeguard the network’s legal status in various jurisdictions. It is important to note that space on the council is limited, and each member can have up to two consecutive three-year maximum terms.
Hedera has the highest grade of security possible (ABFT), and by combining high throughput, low fees, and finality in seconds, Hedera leads the way for the future of public ledgers. The Hedera network achieves 10,000 HBAR cryptocurrency transactions per second while the cost per HBAR transaction is very small — around $0.0001 USD.
High throughput, low fees, and finality in seconds
The unique feature of Hedera is its data structure for grouping transactions called a hashgraph – a patented algorithm where all nodes are constantly communicating their information with each other. Hedera makes notable design trade-offs differentiating it from other platforms, and the network supports high transaction speeds for its HBAR cryptocurrency, but allows only approved nodes to participate in determining transaction history.
The HBAR cryptocurrency plays an important role in operating the Hedera network, and users need to buy HBAR to perform transactions and operate applications. For every transaction submitted to the network, HBAR tokens are used to pay fees that compensate validator nodes for bandwidth, compute, and storage. The total supply of HBAR tokens is fixed at 50 billion, which is also very important for investors who believe that HBAR may grow in value with use and demand.
Turbulence on the horizon
The current price of HBAR is more than 85% off from its 2022 highs that were registered in January, and the risk of further decline for HBAR is not over. The collapse of FTX raised more doubts in the crypto space, while hawkish messages from major central banks added another pressure on the cryptocurrency market.
Investors should continue to take a defensive investment approach early in 2023 amid expectations of “some market turbulence” from looming recession concerns and macro uncertainty.
“The reality is, we believe that we are likely to experience some market turbulence in the nearer term before the skies begin to clear as we approach and work through the middle portion of 2023. That means we anticipate a continued defensive portfolio stance in the opening weeks and likely months of next year.”
– Scott Wren, Senior Global Market Strategist, Wells Fargo Investment
Many analysts expect a global recession that could weigh on stocks and cryptocurrencies even more. The crypto selloffs could gather speed if Bitcoin is unable to hold at the $16,000 mark, and because of this, traders should keep Bitcoin on their watchlist.
Technical analysis for HBAR
Hedera (HBAR) has weakened from $0.064 to $0.036 since November 05, 2022, and the current price stands at around $0.037. HBAR might have a hard time holding above the $0.035 level in the upcoming week, and a break below this level would indicate that HBAR could probably test the price level at $0.030.
On the chart below, I marked the trendline, and as long the price of HBAR is below this trendline, we can’t talk about a trend reversal, and the price of HBAR remains in the SELL-ZONE.
Important support & resistance levels for HBAR
On this chart (the period from July 2022), I marked important support and resistance levels that can help traders to understand where the price could move. HBAR remains under pressure, but if the price advances above $0.045, the next target could be resistance at $0.050. The current support level is $0.035, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.030. If the price drops below $0.030, which represents an important support level, the next target could be located around $0.025 or even below.
What speaks for the rise in the HBAR price
The upside potential for HBAR remains limited for January 2023; still, if the price advances above $0.045, the next target could be resistance at $0.050. Fundamentals of HBAR are strongly tied to the overall cryptocurrency market (especially with Bitcoin), and if the price of Bitcoin jumps above the $20000 resistance again, we could see HBAR at higher price levels.
What indicates further downfall for HBAR
HBAR closed the month in a negative posture amid a decline in interest in the market and a worsening macroeconomic environment. The upside potential for HBAR remains limited, especially after hawkish messages from major central banks.
Economists have warned that a global recession could be on the horizon, and the consensus appears that the price of HBAR will drop even more, which opens an attractive entry point. The price of HBAR currently stands at $0.037, but if the price drops below $0.035, which represents the first support level, the next target could be located around $0.030 or even below.
What do analysts and experts say?
December has been a rough month for HBAR, and investors have lost interest in accumulating more coins. Brandon Pizzurro, director of public investments at GuideStone Capital Management, said that hawkish messages from major central banks mean more pain for equities and cryptocurrencies. According to Brandon Pizzurro, the worst is ahead of us, and the upside potential for HBAR probably remains limited for January 2023. Zhou Wei, the former chief financial officer of the Binance exchange and the CEO of the Coins.ph platform said that the crypto market would remain depressed for a long time, with more restrictive regulations coming following the collapse of FTX.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.