Hedera: HBAR continues its journey south as the chain comes back online

  • After a period of downtime, Hedera has resumed operations.
  • HBAR suffered a liquidity exit, causing its price to drop.

The Hedera network has resumed operations after being down for hours on March 10 due to exploiting its mainnet’s smart contract service code.

On March 10, the attack targeted Hedera Hashgraph’s smart contract service code, transferring the Hedera token Service token 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.

According to DefiLlama, the total value locked (TVL) of DeFi protocols on Hedera plummeted within roughly 24 hours of the network going offline.

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However, TVL is up 7% in the last 24 hours since operations resumed. At press time, the network’s TVL was $28.06 million.

While Twitter user KungensSlott complained about low transactions per second on the network shortly after coming back online, 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.

A bleak outlook for HBAR

Similar to the overall rise of the cryptocurrency market at the beginning of the year, the price of HBAR also rose to a high of $0.088 on February 20 before falling.

At press time, HBAR was trading at $0.05795, down 34% over the past 20 days, according to CoinMarketCap.

As observed on the daily chart, the decline in HBAR’s value since February 20 ushered in a new bear market. Looking at alt’s Moving Average Convergence/Divergence (MACD) indicator shows that the intersection of the MACD line and the trendline was in a downtrend on February 20th and has been positioned as such since.

As the price of HBAR fell, the bears regained power and took control of the market. The alt’s Directional Movement Index (DMI) bears out this stance.

read ivy [HBAR] Price Forecast 2023-2024

At press time, the strength of sellers (red) at 26.77 was well above that of buyers (green) at 11.52. Additionally, the average directional index (ADX) is 32.28, suggesting sellers are rock-solid and buyers may find it impossible to undo anytime soon.

At the time of writing, the price of HBAR is near the lower band of its Bollinger Bands indicator. While this would normally indicate that the asset is oversold and likely to rise in price, looking at the token’s Chaikin Money Flow (CMF) confirms increased liquidity in the HBAR market.

At press time, the CMF was negative -0.09 and would have to reclaim its position above the HBAR price midline before any significant price rally could be recorded.

Source: HBAR/USDT on TradingView

Information source: compiled from AMBCRYPTO by 0x information.Copyright belongs to the author, without permission, may not be reproduced

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