This Google Linked Cryptocurrency Surged by 300%, But Data Suggests It May Soon Plummet
The recent Bitcoin-induced bull market has led many smaller altcoins to begin surging, making the current market condition look strikingly similar to that seen in 2017 when BTC’s rally allowed other cryptocurrencies to incur parabolic uptrends.
One example of a relatively small crypto that has seen insane gains over the past couple of days is Hedera Hashgraph, which was able to post and over 300% rally in under 48 hours, with this rally coming about after news broke that Google is taking an active stake in the public network’s governance.
Interestingly, it appears that search trends relating to the key phrase “Hedera Hashgraph” seemed to give traders some insight that a major movement was brewing before its price began climbing.
Now, this same indicator seems to suggest that the cryptocurrency may soon nosedive as investors begin taking profits.
This Largely Unknown Cryptocurrency’s Rally Occurs as “Altseason” Kicks Off
In some ways, it appears that Hedera Hashgraph’s rally is essentially the inaugural altseason pump, with this being one of the first cryptocurrencies this year to clock such massive gains in a 48-hour period.
It is important to keep in mind that the ongoing rally has shown some signs of stalling, but early investors have still been able to book massive profits.
The rally, which first kicked off early yesterday, reached a boiling point today when the token reached highs of over $0.08, which marks an over 300% increase from its weekly lows of $0.019.
Although it has decline slightly from these highs to its current price of $0.063, the crypto is still trading up 90% over a 24-hour trading period, and over 200% from its weekly lows.
Buyers Beware: Google Trends Data Suggests a Nosedive Could Be Inbound
Despite the overt bullishness of the token at the moment, it is important to note that its recent price action has been trailing the search volume for “Hedera Hashgraph” on Google, suggesting that its price may soon decline further.
On February 11th, just a few hours prior to the crypto’s parabolic rally, search volume for this term began spiking, suggesting that a flood of retail investors were about to pour capital into the token.
This volume continued growing until roughly 00:00 UTC-8:00, which was also just a few hours before the crypto peaked and began its descent to its current price levels.
Now, as can be seen on the chart below, search results for the aforementioned key phrase are once again plummeting, suggesting that the crypto could soon see a further decline in price.
Google Trend results for the search term “Hedera Hashgraph”
Although Hedera Hashgraph may have already posted the bulk of the gains it will see this year, it is important to keep in mind that it may be a sign of what’s to come for other altcoins, as it could mark the start of the prophesized “altseason.”
Featured image from Shutterstock.
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