Hedera’s (HBAR) price has risen sharply in the short run, with triple-digit gains recorded in the last day due to rumors of ties to BlackRock, the largest investment firm in the world (NYSE: BLK).
Hedera’s announcement that BlackRock’s ICS U.S. Treasury money market fund would be tokenized in collaboration with Ownera and Archax set off a chain reaction. Hedera’s statement didn’t stop some fans from misinterpreting the circumstances and thinking that BlackRock had selected Hedera to tokenize its fund directly.
When the HBAR Foundation, which is in charge of the Hedera network, shared a post on X (formerly Twitter) that suggested a direct partnership between BlackRock and a video that fueled more rumors and suggested that the investment behemoth was actively involved in the project, the confusion reached a breaking point.
The misunderstanding caused the price of HBAR to soar, peaking at $0.13 per token. The euphoria, however, was short-lived as it became apparent that BlackRock was not actually working on the project and was only “aware” of the tokenization on-chain.
Graham Rodfort, CEO of Archax, further stressed that BlackRock had no influence on the choice of Hedera; rather, it was determined by their judgment.
What happens to HBAR next?
At the time of publication, HBAR was worth $0.129, a 48% daily gain. The cryptocurrency has increased by about 65% on the chart following trading in a comparatively consolidated pattern on the weekly timescale.
Whether HBAR can maintain its momentum is the main concern after the short-term price change. For example, CrediBULL Crypto mentioned in an X post on April 24 that Hedera may be ready for a big increase because of a pattern in its price movement.
A noteworthy pattern known as a “nice 5 wave impulse off the lows” was identified by the study, and it suggested a strong upward surge in Hedera’s price from its recent lows. Many people consider this pattern as a bullish indication, indicating a strong buying momentum in the market.
But the analysis also showed that a lower period market structure breach is necessary to initiate this expected upward surge. This break acts as a catalyst, creating the required impetus to raise the price of Hedera.
Technical signs for HBAR are still bullish elsewhere, even with the uncertainty surrounding the BlackRock scenario. The one-day gauge summary that was obtained from TradingView indicates that Hedera is in a “strong buy” emotion at 15, which is consistent with the moving averages’ evaluation at 13. On the other hand, oscillators are now rated as “neutral” at 8.
The effects of Blackrock
It’s important to note that BlackRock has increased its footprint in the cryptocurrency space since the spot Bitcoin (BTC) exchange-traded fund (ETF) was approved. For instance, the company launched its USD Institutional Digital Liquidity Fund on Ethereum last month, marking its entry into the real-world asset (RWA) tokenization space.
Therefore, if BlackRock were to work directly with Hedera, it would have a significant impact on the project given its prominence in the financial industry.
April 2024, Cryptoniteuae
