- Hedera Hashgraph token dropped to an important support level.
- The key news to watch this week will be the 1.5 billion HBAR unlock.
Hedera Hashgraph price came under intense pressure on Monday morning as investors braced for a major token unlock. HBAR dropped to $0.056, the lowest level since August 18th. It has dropped by more than 25% from the highest level this month.
HBAR token unlock
Hedera Hashgraph is one of the most powerful EVM-compatible networks in the world. It can handle thousands of transactions per second (tps), with the cost of each being relatively negligible. Hedera is used by some of the leading companies in the world like Google, LG, and IBM.
The biggest Hedera Hashgraph news of the week will be the upcoming token unlock scheduled for Thursday. A token unlock is an event where more tokens are released to the market in line with the vesting schedule.
Token unlocks are often seen as being negative for cryptocurrencies since they often lead to dilution. In Hedera’s case, data compiled by TokenUnlocks shows that its maximum supply is 50 billion HBAR tokens.
The current circulating supply is 33 million tokens, meaning that almost 17 billion more tokens will come in the market in the next few months. The final tokens will be released in February 2024.
Hedera Hashgraph will release 1.5 billion tokens this week. These tokens will go to network and governance, purchase agreements, and ecosystem funding. At the current price, these tokens are valued at over $64 million, representing 3% of the total coins.
In most periods, cryptocurrencies tend to drop ahead and after a major unlock event. For example, Lido’s LDO and Avalanche’s AVAX dropped last week after the developers unlocked millions of tokens. In Lido’s case, this was a notable unlock since it was the final one as part of its vesting schedule.
Hedera Hashgraph price prediction
The daily chart shows that the HBAR price has been in a strong bearish trend in the past few days. This retreat started when the coin peaked at $0.075 on August 15th. Now, Hedera has moved to the lower side of the ascending channel shown in black.
It is also hovering at the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below the neutral level. Therefore, the path of the least resistance for HBAR is bearish, with the next key level to watch being at $0.050.
The alternative schenario is where the token bounces back and retests the upper side of the channel at ~0.070.
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