Hedera Experiences 12% Decline – Could Upcoming Upgrade Transform HBAR's Future?

Hedera [HBAR] has faced a 12% drop this week, but there are significant developments on the horizon. JPMorgan has recently spotlighted Hedera as a prime example of public-permissioned distributed ledger technologies (DLTs). Additionally, Santiment’s data has ranked the network fourth in global developer activity over the past month. With a mainnet upgrade planned soon, will this shift influence HBAR’s price?

Key Takeaways

Hedera [HBAR] has recently fallen by 12%, but important advancements are on the way.
JPMorgan has identified Hedera as a strong example of public-permissioned DLTs.
Santiment ranks Hedera fourth worldwide in developer activity over the last month, indicating robust developer engagement.
A mainnet upgrade is set for January 21, which could potentially enhance HBAR's price if executed successfully.
The current market sentiment shows consolidation as traders await definitive signs of HBAR's next movements.

HBAR

Market Trends: HBAR's Current Performance

Hedera

Source: TradingView

The daily chart indicates that HBAR's price has retracted following an upward push in early January. Prices have moved toward the mid-range of the Bollinger Bands, yet the momentum hasn’t reached a state of alarm. The Relative Strength Index (RSI) stood at approximately 44 at the time of this report, suggesting a level of weakness without being overly sold. Additionally, bearish pressure appears to be decreasing.

Interest Overview

Source: Coinalyze

Open Interest in HBAR has remained steady near $55 million, indicating there is no significant unwinding of aggressive positions. The funding rates are slightly positive, showing that traders are not placing heavy bets against the price. The current situation reflects a period of consolidation as the market awaits clearer signals.

Hedera Gains Attention

JPMorgan's Insight

Source: X

JPMorgan recently acknowledged Hedera Hashgraph as a leading example of a public-permissioned network. This model promotes open access while maintaining operational control, aligning more effectively with enterprise and regulatory requirements.

Development Activity

Source: Santiment

Moreover, Santiment’s data reveals that Hedera ranks fourth globally for developer activity over the last 30 days, positioning it alongside some of the most actively developed networks in the cryptocurrency space.

Upcoming Upgrade: All Eyes on Hedera

The immediate challenge for Hedera comes with its anticipated mainnet upgrade to v0.69, scheduled for January 21. This upgrade arrives during a period where HBAR has been losing value, even in the face of strong developer engagement. For the market, this upgrade will be crucial to demonstrating that Hedera can continue executing its plans effectively without excessive attention or hype.

Upgrade Status

Source: status.hedera.com

If the upgrade proceeds as expected and leads to improved performance, it could significantly narrow the gap between HBAR's current valuation and its levels of development activity.