Down 34% Network Token Shutting Down For 24 Hours Hurts Its Investors How Can Prices Go Up?

The Hedera network resumed operations on March 10 after hours of outages caused by exploiting its mainnet’s smart contract service code. On March 10, an attack on Hedera Hashgraph’s smart contract service code transferred Hedera Token Service tokens from the victim’s account to the attacker’s account. When the attack was detected, Hedera decided to shut down the mainnet proxy to prevent further theft.

What does the data say?

According to data from DefiLlama, the total value locked (TVL) of assets in DeFi protocols in Hedera fell within about 24 hours of the network going offline. However, since the resumption of operations, TVL has increased by 7% in the past 24 hours. As of this writing, the network’s TVL is $28.06 million.

While Twitter user KungensSlott complained about the low transaction-per-second rate on the network shortly after launch, Hedera has since seen an increase in transactions per second being processed on-chain. At the time of writing, Hedera is processing 791 transactions per second.

Similar to the general volatility in the cryptocurrency market at the beginning of the year, the price of HBAR peaked at $0.088 on February 20 and has been in a downward trend since then.

HBAR, which was trading at $0.05795 at the time of writing, is down 34% in the past 20 days, according to CoinMarketCap data.

As the daily chart shows, the decline in HBAR’s value since February 20 may have started a new bear market. Looking at the altcoin’s Moving Average Convergence/Divergence (MACD) indicator, it can be seen that the MACD line crossed the downtrend line on February 20 and has remained there since.

Have the bears made a move?

The fall in HBAR price caused the bears to regain power and take control of the market. This is also evidenced by the altcoin’s Directional Movement Index (DMI).

At the time of writing, seller power of 26.77 (red) is higher than buyer power of 11.52 (green). Additionally, the Average Directional Index (ADX) of 32.28 suggests that seller power is a rock solid force that buyers may find impossible to undo in the short term.

At the time of writing, the price of HBAR is close to the lower band of the Bollinger Bands indicator. While this typically indicates an asset is oversold and may be due to rising prices, the HBAR market has seen increased liquidity outflows, as seen by the token’s Chaikin Money Flow (CMF). The CMF is negative -0.09 at the time of writing and may need to regain a position above the HBAR price midline for significant price gains.

Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Alican Ülker, without permission, may not be reproduced

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