Hedera's appeal attracting substantial investments by traders - Uncovering potential pitfalls
In the cryptocurrency market, Hedera (HBAR) is generating a significant buzz as it approaches the $0.26 resistance level. According to recent analysis, the bullish sentiment towards HBAR appears strong enough to challenge and potentially break through this barrier.
Technical indicators suggest an upward momentum shift for HBAR. The digital currency has surpassed its 50-day and 100-day exponential moving averages (EMAs), a positive sign. The Relative Strength Index (RSI) is currently above 53, indicating a bullish divergence gaining traction. Meanwhile, the Average Directional Index (ADX) and MACD are also rising, confirming a bullish path of least resistance.
The price of HBAR has formed a double-bottom pattern with a neckline around $0.23, which it has breached, signalling further upward movement. Some forecasts predict a possible recovery range up to $0.30 or higher by late July 2025, contingent on improving market sentiment and ecosystem developments.
On-chain and ecosystem factors also contribute to the bullish outlook. Hedera's rising open interest and bullish ecosystem news have coincided with the price uptick, showing increased investor confidence and likely higher demand. While short-term bearish divergences warn of minor corrections, the longer-term outlook remains bullish.
The immediate resistance zones are roughly between $0.26 and $0.30, with strong support near $0.15-$0.18 and $0.23 once broken acting as a bullish trigger point. If HBAR can successfully break through the $0.26 resistance, a 39.6% rally could push the price up to $0.37.
Exchange outflows also suggest that there is accumulation of HBAR, potentially creating buying pressure to help the digital currency breach its key resistance level. However, the RSI remains at 78, signalling overbought territory, increasing the odds of a short-term correction before any sustained breakout.
Despite these potential corrections, bullish on-chain metrics and the strong long/short ratio of 1.94 indicate a strong bullish skew among traders. Data from CoinGlass shows growing confidence among derivatives traders despite the resistance overhead. As of now, HBAR is trading at $0.237, up 1.6% in the last 24 hours.
Investors have shown interest and confidence in HBAR by accumulating the token over the past 48 hours. As of the 16th of July, 66.02% of Binance traders were long on HBARUSDT, indicating a bullish sentiment on the exchange.
While a breakout above $0.265 could lead to a bullish run, if the price fails to break out, it could potentially fall back to $0.22, representing a 13% downside. However, the overall sentiment remains optimistic, with traders confident that HBAR will continue to trade above its 200-day EMA at $0.1808, indicating a bullish trend on the higher timeframe.
In conclusion, the current technical setup, positive on-chain metrics, and ecosystem momentum suggest that HBAR's bullish sentiment is strong enough to test and potentially break the $0.26 resistance level in the near term. However, minor pullbacks may occur before continued upward progression.
- In the realm of technical analysis, the Relative Strength Index (RSI) for Hedera (HBAR) is currently above 53, showing a bullish divergence gaining traction.
- Some traders are optimistic about HBAR's future, as data from CoinGlass indicates a strong bullish skew among derivatives traders.
- Meanwhile, exchange transactions indicate that investors have been accumulating HBAR, potentially building buying pressure to help the token breach its key resistance levels.
- As the price of HBAR trades at $0.237, and with 66.02% of Binance traders long on HBARUSDT, the overall sentiment among investors remains bullish for the cryptocurrency.
