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Hedera (HBAR) Hits Yearly High With More Gains Possible After Minor Correction

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • HBAR has completed wave (3) with strong bullish momentum.
  • Overbought conditions suggest consolidation or a corrective pullback is likely.
  • Resistance lies at $0.258 and $0.311, with key support at $0.206.

Hedera (HBAR) has experienced a robust rally following a prolonged correction, breaking out from its base near $0.041 to reach a high of $0.26.

This move marks the completion of wave (3) in an Elliott Wave structure, supported by strong bullish momentum and confirmed by the price hitting the 1.618 Fibonacci extension.

As the Relative Strength Index (RSI) enters the overbought territory, the price may consolidate or correct in the short term while the broader bullish structure remains intact.

HBAR Price Analysis

The daily chart for Hedera Hashgraph (HBAR/USD) reveals a significant rally following a prolonged corrective phase.

After establishing a base within the green support zone near $0.041, the price surged impulsively, breaking through previous resistance levels and reaching a high of $0.26 as part of an Elliott Wave structure. 

The current price action suggests the development of wave (3) within a larger five-wave pattern, indicating strong bullish momentum. This is further confirmed by the fact it reached the typical Fib extension of 1.618. 

HBAR price analysis
HBARUSD likely ended its uptrend | Credit: Nikola Lazic/TradingView 

The RSI has entered the overbought territory, reflecting the intensity of the recent rally but hinting at a potential cooling-off period or consolidation in the near term.

The broader bullish structure remains intact, provided HBAR sustains above key support levels during corrective moves.

Fibonacci extensions project the next major targets for wave (5) at $0.31 (2 Fib), but first, HBAR will likely consolidate sideways. 

Key Observations

  • Impulsive Rally: HBAR has entered wave (3) of a larger Elliott Wave structure, marking a significant uptrend.
  • RSI Overbought: The RSI indicates overbought conditions, suggesting potential short-term consolidation.
  • Critical Levels: Resistance lies at $0.259 (1.618 Fib) and $0.311 (2.0 Fib), with strong support at $0.206 (1.272 Fib) and $0.176.

HBAR Price Prediction

The hourly chart indicates a sharp rally culminating in wave (v) completing wave (3) at $0.26. This move marks the exhaustion of an extended impulsive structure, with the price now consolidating below the resistance zone as it transitions into a corrective phase.

Today, we saw an 8% decline to a low of $0.233, suggesting that HBAR may enter an ABC correction or a triangle consolidation before attempting further upside.

The broader bullish momentum remains intact, supported by strong upward moves in earlier waves. However, the anticipated correction could retest lower Fibonacci levels. Therefore, the price will be able to form a base for the next impulsive wave.

This consolidation phase is crucial for preserving the broader Elliott Wave structure, with potential support levels aligning with Fibonacci retracement zones.

HBAR price prediction
HBARUSD sideways correction anticipated | Credit: Nikola Lazic/TradingView 

There is a significant zone with its upper level of $0.26 and a lower level of $0.20 at the 0.236 Fib that could serve as the consolidation boundary.

However, depending on the downward momentum, we might see lower values before this anticipated consolidation ends. 

Key Levels to Watch

Support Levels:

$0.206 (0.236 Fibonacci): Initial support level for shallow corrections.

$0.172 (0.382 Fibonacci): Intermediate support, marking a stronger pullback zone.

$0.146 (0.5 Fibonacci): Deeper retracement zone, aligning with prior breakout levels.

Resistance Levels:

$0.258: Current wave (3) peak, key for confirming further bullish continuation.

$0.311 (2.0 Fibonacci extension): Next major resistance target upon wave (5) breakout.

$0.320: Psychological level and long-term resistance.

Holding above $0.206 will be essential for maintaining bullish sentiment. A breakdown below $0.146 could also suggest a more extended corrective structure.

A breakout above $0.258 would confirm wave start (5). This would target the higher Fibonacci extensions and continue the bullish trend.

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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