- Hedera selloff has trimmed down, with a potential breakout in view.
- The ecosystem sentiments like HBAR ETF create the basis for the upside for the coin.
After hitting 10% on the monthly chart, the price of Hedera (HBAR) now finds support at a crucial level. Despite the bearish signals, HBAR has settled at a key demand territory. The market is seeking potential buyer resurgence, which could trigger notable bounce-backs.
Analyzing the Price of HBAR
According to the market cap, HBAR is trading for $0.1927, up 4.8% in the last 24 hours. While the price of HBAR is up on the daily and weekly charts, it is still down by over 10% over the last 30 days.
Technical analysis suggests HBAR is targeting impending breakouts to new price highs. Per the price chart, HBAR hovers around a horizontal demand region between $0.182 and $0.185.
Historically, this zone offered a robust support barrier that prevented further price declines. The region also indicates strong demand, suggesting potential trend reversals for HBAR. However, HBAR is still trading within a descending triangle setup, a pattern typically formed when prices make lower highs with a flat support zone.
HBAR could see its price plummet to new lows if this structure is breached to the downside. Besides, the Ichimoku Cloud presents crucial resistance, depicting notable selling momentum. Thus, bulls must push prices above this region to confirm reversals.
Nevertheless, HBAR has continued to see rising optimism as traders reenter the Hedera network. The prevailing sentiment indicates they are anticipating upside breakouts from the demand region.
Meanwhile, according to technical analysis, HBAR appears bullish in the short-term price action. Notably, the Chaikin Money Flow (CMF) indicator moved from -0.23 to +0.10. A positive CMF value suggests buyers are pushing the price up, and accumulation is happening.
Another popular technical indicator, the moving average convergence divergence (MACD), also demonstrates a bullish resurgence, with an upside crossover and green histograms. Furthermore, the daily Relative Strength Index (RSI) is at 45, suggesting room for rallies before HBAR approaches overbought territory.
Onchain Metrics Supports an HBAR Rally
Onchain metrics further support Hedera’s upside narrative. According to data from CoinGlass, HBAR’s Open Interest (OI) increased by almost 4% to $198.05 million. With OI rising, more cash enters the Hedera ecosystem, signaling increasing momentum in the prevailing price trend.
Additionally, the daily trading volume increased by over 30% to $202.59 million, depicting renewed investor interest. It also hints at continued uptrends in the near term. Breakout confirmation is now set at $0.18 for breakout confirmation. HBAR could see trend reversals if the uptrends from the barrier continue.
However, for solid uptrends, HBAR will need to break the Ichimoku resistance and the descending trendline. The potential launch of an HBAR-based Exchange-Traded Fund (ETF) is one development that could set HBAR on a higher trajectory.
As featured in our recent coverage, the U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale Investments’ proposal for an HBAR ETF. Meanwhile, Nasdaq previously earlier filed a similar 19b-4 form for Canary Capital’s spot HBAR ETF. These filings highlight the growing interest in regulated investment products for HBAR.
