Hedera (HBAR) Forms Double Bottom and Jumps 16% — Bullish Signs Appear

Key Takeaways

• A falling wedge breakout signals a potential bullish reversal.
• The double-bottom could indicate a trend reversal.
• Elliott Wave count implies a developing five-wave impulsive structure.

Hedera (HBAR) has been in a prolonged downtrend but recently showed signs of a potential reversal after reaching a key support zone.

The 4-hour chart suggests that the corrective wave may be complete, while the 1-hour chart highlights an emerging five-wave impulse that could confirm a trend reversal.

HBAR Price Analysis

The 4-hour chart shows that HBAR has been in a corrective structure, forming a descending channel since reaching its local high on Jan. 17 at $0.40.

The decline appears to have completed a WXY corrective pattern, with wave Y reaching a major support zone at $0.21, aligning with the 0.5 Fibonacci retracement level.

Recently, the price bounced from this key support forming a double-bottom eyeing to break the descending channel’s resistance line.

Since its recent low, it has risen by nearly 16%. The breakout would suggest that the downtrend ended with an early wave (i), forming a new upward cycle.

Additionally, the Relative Strength Index (RSI) displayed a bullish divergence near the lows, reinforcing the possibility of a trend shift.

HBAR must reclaim the $0.258 level to confirm a sustained recovery, corresponding to the 0.382 Fibonacci retracement from the recent downtrend.

A move above this level could indicate a transition from a corrective phase into a new bullish, impulsive structure. 

However, failure to hold above $0.217 could lead to another retest of the $0.20 support zone before a clearer uptrend develops.

HBAR Price Prediction

Looking at the 1-hour chart, the Elliott Wave count suggests that a new five-wave structure may unfold.

Wave (i) has likely been completed at around $0.225, and wave (ii) may form a minor retracement before another leg up.

If the bullish scenario plays out, wave (iii) could extend towards the 0.382 Fibonacci level at $0.258, which aligns with the Feb. 3 high.

A potential wave (iv) pullback might follow, testing the $0.240 area before a final push in wave (v) towards the $0.278 zone. 

This region is critical because it represents previous price congestion and a key horizontal resistance level.

Alternatively, if HBAR fails to maintain the breakout and dips below the $0.217 support, it may revisit the 0.618 Fibonacci retracement at $0.176, invalidating the bullish scenario in the short term.

The RSI remains in neutral territory, suggesting room for further upside if momentum sustains.

Key Levels to Watch

• Immediate Resistance: $0.258 (0.382 Fibonacci retracement).
• Major Resistance: $0.278 (structural resistance).
• Key Support: $0.217 (0.5 Fibonacci retracement).
• Critical Support: $0.176 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): $0.278 if the uptrend continues.
• Invalidation Zone: Below $0.176, signaling further downside.