Hedera (HBAR) has showcased an exemplary model of growth through its recent market activities, according to analyst CrediBULL Crypto. Contrary to typical leveraged-driven surges, Hedera has experienced a significant increase in its value, driven predominantly by spot market transactions. This development provides a deep dive into the health of cryptocurrency rallies and offers a clearer understanding of investor behavior in the digital asset market.
Hedera’s recent ascent is marked by a unique pattern absent in many digital currency rallies. The cryptocurrency has seen a price increase of 3.37% over the last 24 hours, reaching a value of $0.11. This increment is part of a broader 1.29% rise over the past week, contrasting with the general downtrend in both the global cryptocurrency market and similar Layer 1 (L1) cryptocurrencies, which have seen declines of 0.90% and 1.00%, respectively.
One notable aspect of Hedera’s rise is the decreasing Open Interest (OI) in the derivatives market. Typically, an increase in OI accompanies price rises, indicating leveraged buying. However, Hedera’s OI has declined, suggesting a reduction in leveraged positions. This scenario underscores a de-leveraging process where traders are likely closing their positions as prices climb, an uncommon but healthy market behavior.
Moreover, the flat or negative perpetual contract volume delta (perp CVD) juxtaposed with an upward trajectory in spot cumulative volume delta (CVD) points to robust spot buying. This shift away from leveraged speculation toward spot transactions indicates a more sustainable upward price movement.
The preference for spot-driven rallies over those fueled by leverage is pivotal for long-term market stability. Spot buyers, typically more interested in holding assets for longer periods, bring a stabilizing effect to the market. These buyers are not subjected to the whims of volatile market swings in the way leveraged buyers are, significantly reducing the risk of sudden market downturns due to mass liquidations.
Hedera’s market behavior offers a clear illustration of how cryptocurrencies can achieve sustainable growth when underpinned by genuine investor interest rather than speculative leverage. As digital assets continue to mature, observing these trends not only aids investors in making informed decisions but also enhances the overall stability of the cryptocurrency market.
