The Hedera Hashgraph price has remained under pressure in the past few months as other cryptocurrencies have plunged. On Thursday, the HBAR token was trading at $0.20, marking a decline of over 50% from its highest point this year. Here are the top three reasons why the Hedera price may surge soon.
Hedera Hashgraph Stablecoin Supply is Sparing
One major catalyst for the HBAR price is the growing amount of stablecoins in the network. Data shows that the market cap of all stablecoins jumped to over $182 million, a record high.
Hedera has had one of the fastest-growing chains in terms of USD Coin (USDC) valuation since the amount stood at $38 million in January and $6.8 million in the same period last year. A surging stablecoin market cap indicates that the Hedera Hashgraph ecosystem is doing well.
HBAR Exchange Outflows are Rising
Another potential catalyst for the HBAR price is increasing investor demand for the coin. Data shows that many HBAR investors are moving their tokens from exchanges to self-custody wallets.
According to CoinGlass, over $18 million HBAR tokens have exited exchanges in the past two weeks, and over $100 million of them have left centralized exchanges this year alone.
Rising token outflows are usually a bullish factor because they show that investors are not selling their coins. Instead, they are moving them into self-custody accounts, hoping the price will rebound.
READ MORE: Hedera Price Prediction: HBAR Poised for a Breakout After 10% Rally
HBAR Price Has Strong Technicals
Finally, the HBAR price is expected to perform well due to its robust technical indicators. The daily chart shows that the coin formed a falling wedge pattern in the year’s first quarter. This is a common bullish pattern comprised of two falling and converging trendlines.
Hedera is forming a broadening wedge pattern, often called a megaphone. This pattern too often leads to more upside over time. HBAR remains above the 50-day moving average, which has provided substantial support.
Therefore, the coin is likely to experience a bullish breakout, with investors targeting the 23.6% retracement level at $0.3200, representing a 60% increase from the current price.
