Hedera (HBAR) Price Surges 15% Following Saudi Partnership
Hedera’s native coin, HBAR, experienced a 15% price increase on February 6, reaching a 20-day peak of $0.78. This surge came shortly after the Hedera team announced a $250 million partnership agreement with the Saudi Arabian Ministry of Investment.
Hedera Price Reacts Positively to Saudi Partnership
Since the crypto market correction in mid-January, HBAR price had been trending downwards. However, the announcement of Hedera’s partnership with the Saudi Arabian government on February 6 caused a shift in momentum and led to a bullish rally.
The partnership focuses on an investment plan that will allow companies to develop advanced technological solutions at the newly launched DeepTech Venture Studio in Riyadh.
Speculative Traders May Pose Risk to HBAR Recovery
Despite the recent price surge, there is concern that speculative traders could hinder the recovery phase. Coinglass’ funding rate metric indicates that the negative sentiment in derivatives markets may undermine the sustainability of the price rally.
When the funding rate rapidly swings negative during a rally, short traders pay high fees to keep their futures positions open in hopes of profiting from falling prices.
Potential Bearish Scenario for HBAR Price
Considering the market data trend, it is possible that the bullish impact of the Saudi Arabia partnership on HBAR price could be short-lived. If bears gain control, they may target a downswing below $0.65.
The Bollinger band’s technical indicator suggests that bulls could find support around the $0.67 area. However, if this support level fails, a bearish reversal towards $0.60 may occur.
Upside Potential for HBAR Price
If the bulls can sustain the momentum from the Saudi partnership, they may invalidate the negative price prediction by retesting $0.80. However, there is a potential sell-wall at $0.78 that could impede the rally.
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