HBAR’s Price Jump: FOMO or a Deeper Shift?

Hedera Hashgraph (HBAR) has taken center stage in altcoin season, surging 9x in the last month. The price shot up from $0.04 to $0.35, outperforming even Bitcoin. But what’s driving this sudden spike? Market hype or something else? Let's explore HBAR’s price action.

What’s Driving HBAR’s Surge?

The main factor behind HBAR’s massive rally is increased market interest. Trading volumes quickly broke records, surpassing levels seen in 2021. Google Trends shows HBAR’s search interest surged in November, reaching its highest point in early December. 

Social media activity also spiked, fueling the excitement and adding to the trading volume. In December, HBAR saw its trading volume peak at $7.42 billion, easily surpassing the $1.31 billion high in 2021. This surge indicates strong market participation. But beyond market excitement, there’s more to this rally.

Rumors of Brian Brooks, a Hedera board member, being nominated for SEC chair under President-elect Donald Trump also fueled the rally. While Paul Atkins is currently favored for the role, Brooks’ name alone led to a 63% increase in HBAR’s price over the past week.

Is HBAR in a Short-Term Bubble?

Despite impressive fundamentals and partnerships, analysts warn of a short-term bubble. Benjamin Cowen, a well-known crypto analyst, cautioned that HBAR’s surge might not last. 

Signs of buyer exhaustion are appearing on the charts, especially near the $0.4-level. The long upper wick on the weekly candlestick suggests HBAR may face a pullback soon.

In 2021, HBAR struggled at this same level, retracing to $0.2 before eventually reaching $0.57. Will the same pattern repeat? As the market remains volatile, only time will tell whether HBAR’s surge is a lasting trend or a brief market frenzy.