- HBAR crypto has surged more than 34% in 24 hours to a five-month high.
- Rising Open Interest and DeFi TVL suggested the rally could continue.
Hedera [HBAR] has risen more than 30% in 24 hours, outperforming all the top 30 largest cryptocurrencies by market capitalization.
At the time of writing, the altcoin was trading at a five-month high of $0.118, with a market cap of $4.22 billion.
Will HBAR crypto continue to rise?
HBAR’s recent gains follow a surge in buying activity, as seen in the green volume histogram bars for the past five consecutive days.
At the same time, the Relative Strength Index has risen and has reached a value of 88 at the time of writing, indicating that HBAR is overbought.
When the RSI reaches the overbought level, it usually signals an upcoming short-term correction.
However, traders may choose to hold and not sell as other technical indicators suggest bullish momentum is gaining strength.
The Directional Movement Index (DMI) shows that the upward trend is strong. The positive DI (blue) was higher than the negative DI (orange) as the gap between them has widened, showing bullish momentum.
Additionally, the Average Directional Index (ADX) tilted north, indicating that the press-time trend was positive. The ADX value of 42 also suggested that the uptrend was strengthening.
Source: TradingView
If the bullish momentum continues, HBAR will face resistance at the Fibonacci level of 1.618 ($0.13). The last time HBAR cleared this resistance, it rose to $0.18.
Therefore, if buyers continue to accumulate, a similar rally could occur.
On the other hand, traders should watch out for support at $0.0546 as failure to hold this support level could trigger a trend reversal.
Increasing speculative activity
The derivatives market showed increasing speculative activity around HBAR. At the time of writing, trading volumes for the altcoin on this market stood at $1.37 billion, an increase of over 104% within 24 hours.
Open Interest also rose to $118 million, the highest level since late April, indicating traders are opening new positions.
Source: Coinglass
When the Open Interest rises along with the price, it shows bullish momentum and conviction in the uptrend. Moreover, financing rates remained positive, demonstrating greater demand for long positions.
If the market maintains this bullish outlook, HBAR could extend its gains. However, a spike in Open Interest also shows increasing leverage, which in turn could cause volatile price movements.
Increasing DeFi activity could fuel the rally
The Hedera blockchain also recorded a surge in decentralized finance (DeFi) activity, which could fuel HBAR’s rally.
Data from DeFiLlama showed that Hedera’s DeFi TVL increased by 82% in just one week to $93 million at the time of writing.
Read Hedera’s [HBAR] Price forecast 2024–2025
A similar increase has also been seen in DeFi volumes, which have increased significantly over the past week.
Rising DeFi activity is usually a catalyst for price growth. If this TVL continues to rise, it could support bullish momentum and drive more gains for HBAR.