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Hedera (HBAR) Consolidating at Key Resistance as Market Awaits Next Move

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Consolidation near critical Fibonacci levels signals corrective Wave 4.
  • Descending wedge hints at a breakout for the next impulsive wave.
  • RSI momentum is neutral but shows an early bullish uptick.

Hedera (HBAR) has displayed mixed price action across higher and lower time frames. The daily chart shows consolidation after a prior impulsive rally, suggesting a corrective phase within a broader Elliott Wave structure.

Meanwhile, the hourly chart presents emerging breakout scenarios, hinting at potential bullish or bearish pathways contingent on key levels being breached.

HBAR Price Analysis

The daily chart shows HBAR has completed an impulsive Wave 3 rally that peaked near $0.392 on Dec. 3 before entering a corrective Wave 4 phase.

The correction aligns well with Elliott Wave guidelines, forming a descending wedge pattern supported by Fibonacci retracement levels.

The 0.382 ($0.290) and 0.5 ($0.260) retracement levels have proven critical in maintaining the correction’s structural integrity.

HBAR price analysis
HBARUSD consolidating | Credit: Nikola Lazic/TradingView 

This consolidation phase could have occurred as an ABCDE correction to a low of $0.235 on Dec. 20, as indicated by the internal wave count.

The Relative Strength Index (RSI) on the daily timeframe is neutral, oscillating around the midline, reflecting indecision and a lack of strong momentum in either direction. 

However, a decisive break above $0.392 would confirm a bullish continuation into Wave 5, with potential targets near $0.50 or higher based on Fibonacci extensions.

The descending wedge structure highlights converging price action, often preceding a breakout. Sustained buying pressure above the wedge’s upper boundary could trigger the next impulsive wave, but a breakdown below $0.259 at 0.382 Fib may invalidate this bullish scenario, leading to further downside.

HBAR Price Prediction

On the hourly chart, HBAR is approaching the conclusion of Wave (ii), having rebounded from the wedge’s lower boundary near $0.259.

This movement suggests a potential Wave (iii) breakout, contingent upon breaching the immediate resistance at $0.31.

A bullish target for Wave (iii) is near $0.392, aligning with the previous daily high.

HBAR price prediction
HBARUSD at key resistance | Credit: Nikola Lazic/TradingView 

However, a bearish alternate scenario sees Wave (ii) evolving into a deeper correction, possibly testing the 0.5 retracement level at $0.216.

This aligns with a Wave Y target in a broader corrective structure, where a breakdown below $0.257 invalidates the bullish wave count.

The Relative Strength Index (RSI) momentum on the hourly timeframe has started to turn upward, signaling early signs of bullish interest.

Therefore, this aligns with the recent price action pushing against the wedge’s upper boundary. A confirmed breakout would pave the way for a strong Wave (iii), initially targeting $0.35, with extended targets at $0.40 and beyond if momentum sustains.

Key Levels to Watch

  • Immediate Resistance: $0.328 (0.236 Fibonacci retracement).
  • Secondary Resistance: $0.392 (previous high and Wave 3 peak).
  • Key Support: $0.290 (0.382 Fibonacci retracement).
  • Critical Support: $0.260 (0.5 Fibonacci retracement and Wave (ii) invalidation zone).
  • Short-Term Target for Wave (iii): Above $0.392 if breakout sustains.

 

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.
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Nikola Lazic

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. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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