The daily chart shows Hedera Hashgraph (HBAR) broke out on Dec. 23 after forming a descending triangle pattern with a clear Elliott Wave structure.
After completing a significant rally in waves 1 and 3 at nearly $0.40, the price entered a corrective phase, marked by a consolidation pattern in wave 4.
The current upward movement suggests the start of wave 5, with the potential for more gains.
HBARUSD breakout above descending triangle | Credit: Nikola Lazic/TradingView
Fibonacci retracement levels are drawn to highlight key support and resistance zones.
The price has recently bounced from the 0.382 level, falling slightly below it at $0.24, making an upturn.
We saw an increase of 39% to a high of $0.34 on Dec. 24, but the price is now being traded slightly lower.
The Relative Strength Index (RSI) is moving out of the overbought region, signaling that the market is gaining momentum.
However, it is important to monitor the upcoming Fibonacci resistance levels and see if the price can break through them. If these levels hold, a potential reversal or consolidation could occur.
Key Observations:
The 0.236 Fibonacci level has acted as support, with the next resistance at 0.382 and 0.5.
RSI is showing increasing momentum after recovering from oversold conditions.
Wave 4 consolidation pattern may signal a strong move in wave 5.
HBAR Price Prediction
The hourly chart shows a corrective wave structure for HBAR, with clear Elliott Wave components.
The price has entered wave 4, which has taken the form of a triangle ABCDE pattern, suggesting consolidation before a final push in wave 5.
The price has recently bounced from the lower support trend line of the descending triangle.
HBARUSD two scenarios ahead | Credit: Nikola Lazic/TradingView
The Fibonacci retracement levels are critical in determining potential support and resistance during this correction.
The price is approaching the 0.236 level, and if this holds, it could signal the start of an impulsive move in wave 5. The 0.382 and 0.5 levels will be key to watch for further support in the case of further downside movement.
The RSI slightly recovers from overbought levels but is still below 50, indicating weak momentum.
We may see further bullish continuation if the price breaks through the higher resistance levels. Failure to break these levels could result in a deeper correction or a sideways consolidation.
Key Levels to Watch:
0.236 Fibonacci level: 0.3082 (first support to hold)
0.5 Fibonacci level: 0.2169 (critical support zone)
Resistance near 0.3899 (the upper boundary of the triangle pattern)
Support near 0.2065 (lower support trend line of the triangle)
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
