Hedera's HBAR Token Gains Traction After a Spike in USDC Volume and New U.S. Regulatory Momentum

Hedera's HBAR token gained traction after a spike in USDC volume and new U.S. regulatory momentum. Traders now anticipate further upside

Hedera’s (HBAR) native token has recently come into the crosshairs of traders following a substantial spike in USDC volume and new regulatory momentum in the U.S., leading to a surge in attention towards the token.

As technical and macroeconomic factors continue to align in its favor, traders are now turning bullish on Hedera and anticipate further upside potential for the token.

Key Takeaways

Hedera’s HBAR token has caught the attention of traders following a remarkable increase in USDC volume and the unveiling of new regulatory trends in the U.S., specifically in the realm of crypto.

As technical and macroeconomic variables converge to create a bullish backdrop, traders are focusing on Hedera with optimism and anticipate further gains for the token.

Attention has been drawn to a substantial transaction involving 105,736 ETH (roughly $262 million) being transferred to Kraken by co-founder Jeffrey Wilcke, leading to a decline in the Ethereum price.

The massive transaction was quickly detected by on-chain analytics platform Lookonchain, which reported a nearly 2% drop in the Ethereum price following the transfer.

While Wilcke has made large-scale transactions in the past, the timing and magnitude of this deposit have sparked interest among traders.

Earlier this year, a similar move by AVALAX, a major AVALANCHE whale, coincided with a steep price decrease from $3,625 to less than $2,000.

The same report by Lookonchain also mentions that eight newly created wallets received identical portions of ETH shortly after the deposit, which may indicate the funds are not destined for liquidation but possibly for custody reshuffling. However, the short-term market reaction remains cautious.

Several technical indicators suggest the short-term outlook for the Ethereum price is weakening. The Parabolic SAR now stands at $2,722, which is above the current price level and indicates the trend is no longer bullish.

Also, Ethereum has recorded lower highs, which typically reflects declining buyer interest.

The Relative Confidence Index (RCI) indicates a bearish divergence. While long-term readings remain positive, the short-term RCI has dropped to -36.97. This divergence suggests weakening momentum, as traders turn cautious amid heightened volatility and recent whale activity.

The $2,339 support level is now a critical line for bulls to defend. It represents a previous area of strong demand and a high-volume trading zone. If Ethereum falls below this point, analysts expect selling pressure to accelerate, potentially pushing the price toward $2,100.

Ethereum derivatives data suggests mixed market conditions. Open interest in ETH futures increased by 1.72% to $30.94 billion, showing continued engagement. However, futures trading volume dropped by over 34%, suggesting that many traders are adopting a wait-and-see approach.

The options market followed a similar pattern. While open interest remained steady at nearly $7.69 billion, volume declined by 32.62%. Traders are holding current positions instead of entering new trades, reflecting uncertainty around the short-term direction of Ethereum’s price.

Liquidation activity also reveals cautious positioning. In the last 24 hours, $64.37 million in ETH positions were liquidated. Of this, $35.46 million came from long positions and $28.90 million from shorts. The most significant losses occurred in the last 12 hours, with long liquidations contributing the most, signaling elevated risk.

ETH’s active exchange supply reached a historical low point at the time of its transfer. Nearly all Ethereum’s supply, or 95.1%, is now in the hands of its users, as more ETH has been withdrawn from centralized platforms into personal wallets.

This could limit the immediate selling pressure but at the price of lower liquidity. The market uncertainty is also driven by Fed interest rate news and the SEC’s upcoming June evaluation of ETF applications from altcoins.

As such, the fate of the world’s second-largest cryptocurrency remains in the balance as it flits below the $2,500 mark, a main price barrier.

Several indicators still support the rise if the value stays over $2,300. However, the prospect of selling, especially with big deals like Wilcke’s, continues to influence short-term sentiment.

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.