Hedera coin HBAR price jumps 20% after FedNow mentions Dropp – but there’s a catch

Key Takeaways:

• Hedera coin HBAR price pumps 20%.
• Technical indicators predict another 7% upside move incoming.
• Hedera-based product Dropp got a mention on the FedNow website but no support or endorsement.

YEREVAN (CoinChapter.com) – Hedera token HBAR price rallied 20% in the previous 24 hours, reaching $0.064 in the European session on Aug 14. The price action retested significant support at $0.55 on Aug 13 as the token has traded within a ‘rising channel’ formation since mid-June.

HBAR price pumps 20% in 24 hours

The setup features two parallel trendlines that take the token value incrementally higher while maintaining the price swing. As of 13:00 GMT, the HBAR coin broke above the channel’s resistance. While closing the session above the said line is not given, the chart flashed several bullish cues.

As seen in the chart above, the HBAR coin trading volumes have been increasing since mid-June, which is a sign of increased interest from investors. According to CoinMarketCap, the trading volumes increased by 1,200% in the previous 24 hours, reaching $214 million.

Additionally, the MACD oscillator also entered its bullish zone, while the relative strength index (RSI) reached its market exit point at approximately 70. Should the HBAR coin continue the bullish streak, the next clear target would stand at $0.069, or another 7% higher than the current value.

Meanwhile, the reason behind the uptrend is noteworthy.

FedNow adds Hedera project Dropp to its service providers showcase – but there’s a catch.

In detail, FedNow is an instant payment service developed by the Federal Reserve for depository institutions in the United States. The service launched on July 20, 2023, and allows individuals and businesses to send and receive money.

The official website showcases 108 service providers in total, Hedera’s Dropp service being one of them. The Twitterverse lost no time shilling the service. “Dropp will enable real-time payments through FedNow. Process customers’ credit transfers and handle incoming payments,” tweeted one of the shills. But that’s NOT correct information.

The showcase section on the website is an opportunity for instant payment services to come forward, NOT collaboration with the Federal Reserve in any form.

Dropp team, among other applicants, filled in the necessary information themselves and showcased their service. The Fed had nothing to do with it. Surely, Dropp will become more visible, but there’s no guarantee of US Bank collaboration of any kind.

The Federal Reserve Financial Services (FRFS) website also underscored that the fact of the Dropp showcase (or any other of the 108) does not mean support or endorsement.

FRFS has not reviewed and takes no responsibility for the content or accuracy of any information presented through the showcase. None of the providers supplying materials through the showcase have any special or exclusive relationship with FRFS, and no relationship should be implied. 

read the warning.

However, HBAR traders did not read the fine print. Despite the absence of endorsement from FedNow, the mention alone was enough to pump the HBAR coin 20%.