Why HBAR continues facing the heat despite Hedera’s network upgrade

The number of HBAR investors increased as HashPack’s wallet count spiked. MFI and CMF were bullish, but the rest suggested a continued downtrend.

Hedera [HBAR] will upgrade the Hedera mainnet to v0.35.2 on 31 March. Twitter account Hedera Status mentioned that the upgrade would take approximately 60 minutes to complete, and users should expect some disruption to network services during this time.

Scheduled (Mar 31, 2023, 17:00 UTC): Hedera will be upgrading Hedera mainnet to v0.35.2 on Friday, March 31st 2023 at 17:00 UTC. The upgrade will take approximately 60 minutes to complete, users should expect some disruption to networ… https://t.co/BIYekqAMCP

— Hedera Status (@hashgraph) March 27, 2023

HBAR investors on the rise

While Hedera developers worked on the update, it was also interesting that HashPack, a leading HBAR wallet, hit 250,000 account creations.

We've hit 250,000 account creations! ????

But do account creations really matter that much?

Let's take a dive into some numbers ????

(1/5) pic.twitter.com/GJxSph3ucM

— HashPack Wallet (@HashPackApp) March 27, 2023

The figure was not only promising for HashPack, but also for HBAR, as it indicated an increased number of investors. More evidence of the rise in investors was provided by the fact that HashPack users owned almost four billion HBAR in their wallets, or an average of 16,372 HBAR per account.

As HashPack users account for 90% of the Hedera ecosystem, an increase in their numbers reflects Hedera’s growth. It was also interesting to note that Hedera recently crossed the milestone of successfully completing 6 billion transactions on its mainnet.

HBAR’s price action was not on par

HBAR’s price action declined by 2% in the last 24 hours. According to CoinMarketCap, at the time of writing, it was trading at $0.05904 with a market capitalization of over $1.7 billion. However, a look at HBAR’s daily chart revealed that the dark days might end soon.

HBAR’s Money Flow Index (MFI) was entering the oversold zone. This was positive, as it could increase buying pressure. Another bullish indicator was the Chaikin Money Flow (CMF), which registered an uptick lately. Nonetheless, nothing can be said with certainty as the Exponential Moving Average (EMA) Ribbons continued to favor the bears.

Source: TradingView

What metrics suggest

While a few of the market indicators were positive, the same can’t be said for the on-chain metrics. HBAR’s funding rate declined sharply, reflecting less demand for the token in the derivatives market. Although Hedera was set to release its upgrade, development activity plummeted sharply. The network’s social dominance also declined, suggesting less popularity for Hedera.

Source: Santiment

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