Descending Triangle Pattern in Formation
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.
HBAR :Bullish and Bearish Scenarios
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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