Understanding Hedera
Hedera is a widely adopted enterprise-grade public network that facilitates transactions and application deployment. However, the network’s software is overseen by a consortium of businesses. This governing body, the Hedera Governing Council, comprises 39 members as of 2020, including notable organizations such as Google, IBM, Boeing, Deutsche Telekom, DLA Piper, FIS WorldPay, LG, Magalu, and Nomura.
The council is responsible for managing the software, voting on changes, ensuring proper allocation of funds, and maintaining the network’s legal status across jurisdictions. Membership is limited, and each member can serve up to two consecutive three-year terms.
Hedera boasts the highest security standard (ABFT) and combines high transaction throughput, low fees, and rapid finality, positioning itself as a leader in public ledger technology. The network can handle up to 10,000 HBAR transactions per second at a minimal cost of approximately $0.0001 per transaction.
Key Features: Speed, Cost, and Finality
Hedera employs a unique hashgraph data structure for organizing transactions — a patented algorithm enabling continuous communication among nodes. By making distinct design choices, Hedera achieves high transaction speeds for its HBAR cryptocurrency while restricting transaction history determination to approved nodes.
HBAR plays a vital role in the network’s operation. Users must purchase HBAR to perform transactions and operate applications. Each transaction incurs a fee in HBAR, compensating validator nodes for bandwidth, computation, and storage. With a total fixed supply of 50 billion HBAR tokens, investors see potential growth in value as demand increases.
Pirsgirêkên pêşî
Ew current HBAR price is more than 85% below its January 2022 peak, signaling ongoing risks of further decline. The collapse of FTX has heightened skepticism within the cryptocurrency sector, while hawkish policies from major central banks continue to exert downward pressure on the market.
Analysts recommend a defensive investment strategy for early 2023, anticipating turbulence due to recession fears and macroeconomic uncertainties.
“We anticipate market turbulence in the near term before conditions stabilize in mid-2023. Accordingly, maintaining a defensive portfolio stance in the early months of the year is prudent.”
– Scott Wren, Senior Global Market Strategist, Wells Fargo Investment
A potential global recession could further impact stocks and cryptocurrencies. Bitcoin’s ability to hold the $16,000 level will be critical for broader market stability.
HBAR Analysis Teknîkî
Since November 5, 2022, Hedera (HBAR) has declined from $0.064 to $0.036, with the current price hovering around $0.037. The $0.035 level is key support, and a breach could push HBAR toward $0.030.
The chart below highlights a trendline. As long as HBAR remains below this trendline, the token stays within the SELL-ZONE.
Critical Support and Resistance Levels
The chart (from July 2022) illustrates critical support and resistance levels. If HBAR surpasses $0.045, resistance at $0.050 could be the next target. However, the $0.035 support level remains crucial; a break below this point signals a move toward $0.030. Further declines could lead to $0.025 or lower.
Factors Favoring a Price Increase
The upside for HBAR in January 2023 appears limited, yet surpassing $0.045 could lead to resistance at $0.050. HBAR’s fundamentals are closely tied to the overall cryptocurrency market, especially Bitcoin. A rebound in Bitcoin above $20,000 could boost HBAR prices.
Indicators of Potential Price Decline
HBAR concluded December with weak momentum amid declining market interest and unfavorable macroeconomic conditions. The price potential for HBAR remains constrained, compounded by hawkish central bank policies.
A drop below $0.035, HBAR’s first support level, could pave the way for a further decline to $0.030 or lower.
Expert Opinions on HBAR
December was challenging for HBAR, with diminished investor interest. Brandon Pizzurro, director at GuideStone Capital Management, warns that hawkish central bank policies spell trouble for cryptocurrencies. Zhou Wei, former Binance CFO, predicts extended market depression and stricter regulations following the FTX collapse.
Ava dikan: Cryptocurrency investments are volatile and not suitable for everyone. Only invest funds you can afford to lose. The information provided here is for educational purposes and not financial advice.
