Hedera (HBAR) has seen a significant drop in its price, becoming the top loser among major cryptocurrencies with a 20% decline over 24 hours. This slump followed a 180% price rally attributed to Canary Capital's filing for an HBAR ETF.

The plunge is believed to stem from speculation about the successor to the U.S. SEC Chair position. Initially, rumors suggested Brian Brooks, a Hedera board member, but later indicated that Teresa Goody Guillen may be the favored candidate, causing the price drop.

The market reaction included a reduction in Open Interest (OI) in HBAR derivatives from $120 million to $100.95 million, reflecting decreased speculative activity and liquidity challenges.

Positive sentiment around HBAR has diminished following the rumors, hindering its potential price hike and suggesting a potential struggle to maintain an uptrend.

Technically, HBAR was overbought, according to the Relative Strength Index (RSI). If buying pressure resumes, HBAR might recover, seeing a rise back to $0.016.