Hedera (HBAR) is consolidating in a unique chart pattern, signaling an imminent price movement. Investors should closely monitor the next steps of this promising cryptocurrency. Will the next signal be a bullish breakout or a bearish one?
On the daily chart, Hedera (HBAR) is currently consolidating within a descending triangle pattern. This technical structure is generally considered bearish, where progressively lower highs compress against a flat support level until a significant breakout occurs.
Despite several tests, HBAR has successfully defended its support around $0.2260, suggesting accumulation by long-term investors. Currently, the cryptocurrency is trading at $0.2341, just below its 50-day moving average at $0.245 and its bearish trend resistance.
If buyers manage to break above the 50-day moving average and the bearish trend resistance, HBAR could accelerate toward $0.3052, representing a gain of approximately 30% from current levels. Such a bullish breakout would signal significant reversal momentum and could attract new investors.
However, if support at $0.2259 fails, the bearish triangle thesis would be confirmed. In this scenario, HBAR could fall toward $0.16, representing a decline of over 30% based on the pattern’s height.
It could even drop to $0.13 if the liquidity zone at $0.155 doesn’t hold. However, a short-term bounce at $0.16 would be more likely. This could turn out to be a “dead cat bounce” though.
Liquidity and VP Order blocks indicate strong selling by smart money between $0.27 and $0.30. The rejection on August 14th suggests an extended bearish trend in the coming days.
In conclusion, Hedera (HBAR) is at a critical juncture in its evolution, approaching a decisive price movement. Investors should closely monitor the support and resistance levels mentioned to anticipate the next trend direction for this cryptocurrency in the market.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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