Hedera (HBAR) rebounds from September 1 drop

Since the beginning of September 2022, the crypto market has been struggling due to the bearish influence for nearly 10 full months. Many were hoping that the end of summer would bring relief and that the bears would at least pull out, leaving the market neutral now. However, as September 1 approached, the market saw another bearish wave hit it and, unfortunately, prices fell to their respective lows.

This was also the case with Hedera (HBAR), which fell back to $0.6, which serves as the token’s highest support level since January 20, 2021. At the moment, this seems to be its low, and I hope the token sinks no further than that at 2020 levels.

However, we noticed that there is interest in Hedera as the token managed to rebound and recover by several percent from September 2, which was a clear indicator that the token has buyers waiting for the good opportunity to buy the plunge and in doing so on September 1st they caused a slight price increase.

What is Hedera?

Before checking what happened with Hedera’s price, let’s first see what the token is all about.

Hedera, also known as Hedera Hashgraph, is the most widely used, longest lasting and most developed public network to support a decentralized economy. It allows users – who can be individuals or businesses – to build powerful decentralized applications (dApps) on its network.

Essentially, the project was created to serve as a fairer and more efficient system than traditional systems, with the goal of eliminating the limitations that older blockchain-based platforms face. These are issues that have troubled the crypto industry for years, and they are very well known to anyone who has spent time studying crypto and blockchain, including things like high instability, a lack of scalability, slow performance, etc.

The project was founded by Dr. Leemon Baird and Mance Harmon, and it was funded through an ICO that took place in August 2018. After that, it launched open access to its mainnet in September 2019, and since then it works quite successfully. As part of its ICO, investors were allowed to buy the platform’s native utility token, HBAR, at the lowest possible price.

The token itself plays two roles in the Hedera ecosystem, one of which is to power network services, like file storage, regular transactions, smart contracts, etc. The second use case is to help secure the network through staking, which essentially means users can lock up their tokens and receive regular rewards, while contributing to platform security and helping to maintain its integrity.

Another thing to note is that Hedera was not built on a conventional blockchain like most other crypto platforms. Instead, it brought a new kind of distributed ledger technology called Hashgraph. This type of technology allows it to improve aspects of crypto and blockchain that have been criticized for inefficiencies, including speed, cost, and scalability, as mentioned earlier.

So, for example, Hedera’s average transaction fee is just $0.0001, which is virtually fee-free. Additionally, the platform can handle over 10,000 TPS, while blockchains like Bitcoin and Ethereum can only do 7 and 15 TPS, respectively.

Historical price performance of Hedera

The first price data from Hedera comes from September 19, 2019, when the price of the HBAR token was $0.057. However, immediately after the launch, the price crashed – first to 0.029, then to $0.01. After that, at the beginning of 2020, a recovery came back to levels of $0.03, where the price remained until the end of the year, going through the whole year of 2020 with only minor fluctuations.

In 2021, however, the project has seen a massive shift in behavior. From January 3, its price began to experience growth – slow at first, but it quickly picked up, driven by Bitcoin’s own bull run that took the altcoin market by storm. At this point, Bitcoin was already miles away from its own previous ATH of $20,000 and approaching the $30,000 mark. By the time Bitcoin reached $40,000, the rest of the market was already following one of the biggest bull runs ever seen in the world of finance.

In the case of HBAR, the token soared to $0.4 on March 15, which was the highest point in its history up to that point. Still, $0.4 ended up being quite a strong resistance, and it even managed to push the price down. The token fell to support at $0.3, only to return to $0.4 again on March 30, 15 days later. The same thing happened again, and again HBAR crashed to $0.3, and it came back to $0.4.

This time, resistance pushed back harder and HBAR price crashed to $0.25, having a much harder time recovering. As it struggled to build momentum for another push, mid-May arrived, and with it, the first major price correction. Many are still wondering if the market crashed in May because Elon Musk announced that Tesla would no longer accept Bitcoin for its electric cars, as the company found Bitcoin mining to be too energy-intensive, which means it leaves a massive carbon footprint.

Believe it or not, the fact is that the market crashed around the same time as Musk’s announcement, and prices ended up climbing until July 20. Hedera’s price also dropped, this time to $0.2, which was considered its low at the time. However, on July 20, prices started to recover again, leading to an even bigger spike.

Hedera historical price performance 2

While BTC rose until Nov. 11, when it peaked, HBAR’s high point came on Sept. 15 — almost exactly a year ago, when the token hit the price of 0. $.5. It did so in a massive push that resulted in an equally massive correction, leaving it at $0.3 on September 29. However, Hedera wasn’t over yet, and it started to come back up, this time more steadily.

It reached $0.45 on November 12, when the bears finally reached the token and started to drive it down along with the rest of the market. HBAR crashed to $0.22 on December 13, just a month after it all started, and although it had a small rally before Christmas, it still ended the year with a price of 0 $.22.

Hedera price performance in 2022

At the time, crypto users were still unsure if this was a temporary price crash like the one seen in May 2021 or if it was the start of a new crypto winter, like the one observed in 2018. The first few days of 2022 alone made the situation more confusing, as crypto prices started to rise in the first five days of January. HBAR even managed to rally back to $0.33, and for a while everyone thought the November crash was over and a new wave was beginning.

However, the market revealed its true nature around January 5, when the bears once again seized on prices, and this time there was no longer any doubt – the bull run was over and the crypto winter began again.

On January 24, the price of Hedera was down to $0.18. Over the following months, Hedera managed to establish quite strong support at $0.20, with this level holding during the bearish waves, and it managed to venture up to resistance at $0.26 during the calmer times. The first such period occurred in early February and HBAR found itself at $0.26 on February 7, only to drop back down to $0.2 on February 22.

The situation repeated itself in late March and early April, but at the end of April the bear market became much more intense, pushing prices even lower. Hedera, along with many other coins, saw their supports shatter and they sank deeper in search of new bottoms.

HBAR found its own at $0.06, and so far this level has managed to hold through the summer, supporting Hedera’s price in May, June, July and even August.

Hedera historical price performance 3

Now, with the arrival of September, many hoped for a new push, as mentioned, and the last days of August even encouraged this belief. However, September 1 only brought another crash to $0.06, but on September 2, HBAR rebounded to $0.63, which is not much, but it shows that the project is ready to develop, even at the slightest opening.

Market sentiment

Fortunately, Hedera is a project that has a bigger goal than just pumping the price of its token as high as possible, and development has continued even during the bear market. The project has also garnered a lot of attention due to its struggle to grow in the 10 bearish months we have seen so far.

Its positive performance where possible, its continuous development and advanced technology have caught the attention of Coinbase, and recent reports have revealed that the largest exchange in the United States is considering listing HBAR. Meanwhile, experts have continued to point the way to Hedera, noting that it is working to build decentralized ecosystems neck and neck with projects like Avalanche and Big Eyes Coin, both of which are major players in this space. domain.

Some have also speculated that Hedera’s patents could lead to enterprise blockchain adoption and 10x soon, and while that’s an interesting idea, it’s just speculation at this point. However, it’s encouraging given that it’s all positive speculation, which is good news for the project.

What will happen next?

As for what will happen next, no one can really say. Hedera has been showing bullish signs over the past few weeks, but any progress it has seen towards recovery has been undone with the arrival of September. Historically speaking, the crypto winter may soon begin to weaken, leaving the market exhausted and neutral – a state it will spend some time recovering from before the next big bull run.

In the end, all anyone can do now is speculate and guess, as the crypto industry remains as volatile and unpredictable as ever, and there’s no sure way to tell whatever. either with confidence or any kind of guarantee.

To learn more about Solana, check out our Investing in Hedera guide.

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