Hedera Hashgraph (HBAR) Price Prediction: Token Extends Decline Ahead of Fed Announcement

Cryptocurrencies continued to trade in a mixed fashion on Tuesday as both stock and crypto investors remained cautious ahead of the upcoming Federal Reserve announcement.

The world’s largest cryptocurrency, Bitcoin (BTC), dropped by 0.20% in the past 24 hours and is now trading at $28,336. Meanwhile, the second-largest cryptocurrency, Ethereum (ETH), dropped by 0.15% and is currently trading at $1,870.

Most cryptocurrencies dropped as their market cap dropped from over $3 trillion last week to $2.9 trillion now. Top American indices, like the Dow Jones and the S&P 500, dropped by over 0.50%.

This price action comes ahead of the Federal Reserve’s interest rate decision. Economists widely expect the central bank to keep rates unchanged at 4.50% as it awaits further inflation data. Any signal of a future rate cut would likely act as a bullish catalyst for crypto.

Moreover, the SEC is set to hold a tokenization roundtable on Friday, May 12, where it will meet with representatives of major firms like Franklin Templeton, BlackRock (NYSE:BLK) and Invesco. The meeting will focus on the best way to regulate tokenized assets.

Here are three cryptocurrencies that are likely to be in focus this week:

Hedera Hashgraph’s (HBAR) token extended its decline on Tuesday as most cryptocurrencies pulled back from last week’s gains.

HBAR price dropped for four consecutive days and reached its lowest level since April 22. It has dropped by 15% from its highest point last week.

Most cryptocurrencies dropped as their market cap dropped from over $3 trillion last week to $2.9 trillion now. Top American indices, like the Dow Jones and the S&P 500, dropped by over 0.50%.

This price action comes ahead of the Federal Reserve’s interest rate decision. Economists widely expect the central bank to keep rates unchanged at 4.50% as it awaits further inflation data. Any signal of a future rate cut would likely act as a bullish catalyst for HBAR and the broader crypto market.

There are signs that activity in the Hedera Hashgraph chain is rising.

DeFi Llama data shows that the stablecoin market cap in the chain has shot up to a record high of $130 million, a huge increase from the year-to-date low of $37 million. Circle’s USD Coin (USDC) has a 99.8% market share in Hedera’s chain. This increase could be a sign of robust activity in the network.

Another potential catalyst for HBAR is the SEC’s upcoming tokenization roundtable on May 12, which will see representatives from major firms such as Franklin Templeton, BlackRock (NYSE:BLK) and Invesco attend. The meeting will focus on the best way to regulate tokenized assets.

The move comes after the SEC approved the first spot Bitcoin ETF in August 2024. Economists believe that the approval of a spot Bitcoin ETF in the U.S. could open the door for more cryptocurrency derivatives products.

Hedera has emerged as one of the top chains in the real-world asset tokenization industry. For instance, it partnered with Tokeny Solutions last week. Tokeny provides an onchain operating system for compliant asset tokenization.

HBAR crypto price prediction

On the daily chart, HBAR rebounded on April 9, breaking above the upper side of a falling wedge pattern. It then rallied to a high of $0.2020, which coincides with the 100-day Exponential Moving Average.

The bars of the Awesome Oscillator have been trending downwards and are about to cross the zero line. Meanwhile, the Relative Strength Index has formed a double-top pattern at 61.6, which suggests that it may drop further.

In addition, the MACD lines have made a bearish crossover. Taken together, these signals suggest that HBAR may continue to decline, with sellers targeting the year-to-date low of $0.1250. If reached, this level would form a double-bottom pattern, a potential reversal setup.