RIYADH, Feb 7, 2024 – The Hedera network (HBAR) witnessed a significant price surge of 15% on February 6, climbing to a 20-day high of $0.78, shortly after the Hedera team announced a substantial $250 million deal with the Saudi Arabian Ministry of Investment.

Hedera’s Partnership Fuels Optimistic Market Response

The recent five-year partnership with Saudi Arabia has sparked a bullish trend in Hedera’s market value. Following a downward trajectory since the crypto market correction in mid-January, which saw a 22% decrease from Jan. 11 to Feb. 5, HBAR’s fortunes turned with the partnership revelation on Feb. 6. The venture studio established in Riyadh under this agreement is set to drive the development of cutting-edge technological solutions.

HBAR’s price, which had dipped to $0.69, soared to $0.77 within a day of the announcement, marking a remarkable recovery for the cryptocurrency.

Derivatives Market Casts Shadow on HBAR Rally

Despite the positive price action, a key market metric indicates potential headwinds from derivatives traders. The funding rate, as measured by Coinglass, shows a notable negative shift, dropping to a 90-day low of -0.02% on Feb. 7. This metric reflects the fees paid by traders to maintain their positions, and its negative trend suggests a lack of confidence in the rally’s sustainability.

If the bullish sentiment fails to persist, HBAR could face a significant price correction, potentially undermining the recent gains.

Forecasting HBAR’s Price Movements

Analysts are cautious about the long-term impact of the Saudi Arabian partnership on HBAR’s price. With the bears possibly targeting a drop below $0.65, the recent rally could be under threat. The Bollinger Bands indicator, however, suggests that a support line might form near $0.67, offering some hope to the bulls.

On the flip side, if the upward momentum from the Saudi partnership continues, a retest of $0.80 could be within reach, challenging the bearish forecast. Nonetheless, a strong sell-wall at $0.78 could pose a significant obstacle to further gains.