HBAR price set to crash 20% as 3 billion tokens will flood markets in March
- Hedera Hashgraph price is set to devalue as supply increases in March.
- HBAR will unlock 6.28% of supply after the vesting period.
- Expect HBAR to hit $0.06 once unleashed supply has been absorbed.
Hedera Hashgraph (HBAR) has bulls running for the hills as another vesting period is coming to an end in March. Throughout the next month, roughly 3 billion tokens will be unleashed in the markets, forcing supply to outpace demand. It is very simple in Economics 101 that if supply increases more than demand, the price must decrease also.
Hedera Hashgraph forces rethink about supply and demand
Hedera Hashgraph (HBAR) is ringing the bell on the crypto school grounds in order to start giving bulls their first lesson in supply and demand. In March, roughly 3 billion tokens will be released after a vesting period. With roughly 6.28% of supply entering a free market, HBAR bulls will want to stay sidelined and await a coming price adjustment.
HBAR will see price devaluing under that oversupply toward $0.065 as the Relative Strength Index (RSI) needs to absorb the supply. It could even well be that $0.06 gets tested before the RSI reaches oversold. Once a new price equilibrium is reached, bulls will start to buy again and push price action back up.
HBAR/USD daily chart
With the already sharp decline of 18% since last week, a lot has been priced in already. Meanwhile, the economic data calendar is mild and calm for the rest of the week while geopolitical forces fade a bit into the background. Expect to see a bounce higher toward $0.085 as most of the additional supply has already been deducted from the current price action.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
