The Hive price went parabolic on Monday even as other cryptocurrencies recoiled. The coin jumped to a high of $0.5517, which was the highest level since June 22nd. It has risen by more than 85% from the lowest level in June, bringing its total market cap to over $197 million.
What is Hive and why is it rising?
Hive is a leading blockchain project that aims to become a leading platform for developers to build decentralized applications in all industries. It emerged from a hard fork of Steem.
It is a forward-looking platform built on the Delegated Proof of Stake (DPoS) protocol. According to its white paper, Hive leverages the proof-of-brain technology by distributing a portion of inflation to content creators and consumers.
Hive has two main assets in its ecosystem: Hive and Hive Backed Dollars (HBD). HIVE is the liquid currency of the Hive ecosystem. It has a decreasing inflation rate as its inflation drops by 0.01% with every 250,00 blocks until it reaches 0.95%.
Hive has been used to build some of the leading applications in the industry. Some of the top apps in the industry are Splinterlands, PeakD, Ecency, Leo Finance, and Dtube among others. It is unclear whether the total value locked (TVL) in the Hive ecosystem.
It is unclear why the HIVE price is rising as other cryptocurrency prices are falling. Therefore, this rebound could be part of a pump and dump scheme. Recently, we have seen many small coins have similar pumps and dumps.
Hive price prediction
The four-hour chart shows that the Hive price has had a significantly low volume in the past few days. The coin went parabolic on Monday even as other coins declined.
Hive moved above the 25-day and 50-day moving averages and the important resistance level at $0.5025, which was the highest point on July 10th.
It is approaching the important resistance level at $0.566, which was the highest point in May this year.
Therefore, since there is no major news and the volume remains low, there is a likelihood that the coin will resume the downward trend in the near term. If this happens, the next key support level to watch will be at $0.45.