Hedera and Tezos Post Over 25% Gains as Altcoin Market Strengthens
The total crypto market cap has surpassed its previous all-time high, with the altcoin market gaining bullish momentum. In the past 24 hours, mid-cap layer one (L1) projects, notably Hedera (#HBAR) and Tezos (#XTZ), recorded significant gains.
HBAR's price increased over 29 percent in the last 24 hours to approximately 14 cents. This surge resulted in over $9.5 million liquidated in HBAR’s leveraged market, primarily affecting short traders. Similarly, XTZ's price rose over 31 percent, trading at about $1.12, leading to more than $6 million liquidated from XTZ’s leveraged market.
The liquidation of short positions in HBAR and XTZ contributed to the ongoing short squeeze in the altcoin market.
Major Factors Influencing HBAR and XTZ's Performance
The altcoin market has improved following the pro-crypto leaders' victory in the United States, including President-elect Donald Trump. Anticipated clear crypto regulations are expected to enhance competition with global markets.
Bitcoin has seen increased investment from traditional markets, evidenced by cash inflows into US spot BTC ETFs. Historical trends indicate that when Bitcoin's bullish momentum slows, funds often rotate into undervalued altcoin projects.
In recent weeks, HBAR experienced significant bullish activity due to heightened interest among traders. Technical analysis indicates that HBAR successfully rebounded from a key support level above $0.042, established since May 2022. The weekly Relative Strength Index for HBAR surged above 70 percent, reflecting a 220 percent increase over the last 14 days. It is crucial for HBAR to maintain closing prices above the resistance level around 14 cents, established during May 2024.
Reports suggest that Hedera developers' involvement in the upcoming Trump administration has positively impacted HBAR's outlook. Brian Brooks, a prominent Bitcoin board member of Hedera Hashgraph, is reportedly a candidate for the chair of the US SEC.
The Trump administration is also considering a Federal Blockchain-based election voting and identity system utilizing Hedera, Cardano, and Hyperledger networks.
The rise in XTZ's price can be attributed to increased adoption by Everstake, a validator across over 70 blockchains. Everstake announced it will support Tezos staking with an annual percentage rate (APR) of up to 13.35 percent.