- Hedera (HBAR) has experienced a strong upward movement but is currently undergoing a correction, facing resistance at $0.374.
- Analysts suggest that while short-term declines may continue, bullish momentum could resume with potential catalysts like upcoming cryptocurrency ETFs and broader market developments.
Hedera (HBAR) has been making waves in the cryptocurrency market, showcasing significant growth throughout 2023. However, like most assets, it is experiencing a period of correction. Despite reaching critical resistance levels, HBAR’s strong performance during this correction phase raises questions about its future trajectory. Let’s dive into the recent price movements and what they mean for HBAR’s outlook.
HBAR Price Action
Reaching Critical Resistance
Recently, Hedera (HBAR) reached a critical resistance level at $0.374. This milestone marks a horizontal resistance area, as well as the 0.618 Fibonacci retracement resistance level. Despite breaking out from an ascending trend line and a $0.246 horizontal resistance area, the price has faced rejection at these key levels, leading to a retracement.
The Five-Wave Movement
The recent price surge indicates that HBAR completed a five-wave upward movement, which is a common pattern in asset price movements. This rally culminated with a high of $0.392 on December 3rd after an impressive 820% increase since November.
However, following this peak, HBAR has experienced a significant decline, falling by 40% at its lowest point. This correction suggests that HBAR may be shifting from an upward trend to a consolidating phase, raising concerns about further downside potential.
Analyzing Technical Indicators
On a weekly timeframe, HBAR has shown bullish momentum, with key technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remaining above their bullish thresholds. These suggest potential for further upward movement, although a short-term correction seems likely.
Yet, on a daily timeframe, bearish signals are emerging. A bearish divergence in the RSI and a bearish cross in the MACD imply that HBAR may see a further decline before resuming its bullish trend. The daily time frame predicts that HBAR could drop to the 0.5 Fibonacci retracement support level of $0.219.
Sentiment and Analyst Insights
The sentiment surrounding HBAR remains optimistic, with analysts pointing to hidden bullish divergences and upcoming catalysts. For instance, Coinvo highlights that a continuation of the bullish trend is expected, while Solberg anticipates a breakout from the symmetrical triangle, potentially driving further gains.
Moreover, positive external factors such as the anticipated rise of cryptocurrency ETFs in 2025 could positively impact HBAR. Additionally, rumors suggest that American cryptocurrencies, including HBAR, may be included in the Strategic National Reserve alongside Bitcoin and XRP.
Drop Before Continuation
Despite its bullish outlook, the likelihood of a short-term retracement cannot be ignored. A drop to $0.219 could be a healthy correction before HBAR resumes its upward trajectory. A successful breakout above $0.374 will signify that the correction is complete and that HBAR is poised for continued growth.
Conclusion
Hedera (HBAR) has shown impressive gains but is currently navigating through a correction phase. While bullish indicators support a future rally, technical signals suggest a potential short-term dip. Investors and traders should monitor these movements closely to anticipate HBAR’s next significant move in the market.
