Hedera (HBAR) Price Strong During Correction but Downtrend May Not Be Done

Key Takeaways

• Hedera (HBAR) reached a critical resistance at $0.374.
• The price has completed a five-wave upward movement.
• Has HBAR reached a local bottom or is there more downside?

Since the start of November, HBAR has been one of the best-performing large-cap cryptocurrencies alongside XRP. The rally culminated with a high of $0.392 on Dec. 3 after an 820% price increase.

However, HBAR has declined since, at one point falling 40%.

This opens the possibility that the HBAR price has started its correction. Let’s analyze the price action and see how likely this is.

HBAR Reaches Resistance

The weekly time frame HBAR chart shows that the price has increased parabolically since the start of November, creating five successive bullish candlesticks.

The HBAR price broke out from an ascending resistance trend line and the $0.246 horizontal resistance area during this upward movement.

HBAR reached a high of $0.392 before falling. The rejection confirmed the $0.374 area as resistance. This is a horizontal resistance area and the 0.618 Fibonacci retracement resistance level.

Last week, HBAR broke its bullish streak and created the first bearish candlestick in six weeks, validating the $0.246 horizontal area as support (white icon). Currently, HBAR trades range between $0.246 and $0.374.

Technical indicators are bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing and above their bullish thresholds.

So, the HBAR price will likely reach the range high again and possibly break out.

What Analysts Are Saying

HBAR sentiment on X is bullish. Coinvo notes a hidden bullish divergence  in the RSI, suggesting it will lead to trend continuation. Solberg believes  HBAR will resume its rally once it breaks out from its symmetrical triangle.

Positive HBAR news besides technical analysis: Bloomberg senior ETF AnalystEric Balchunas believes  that a wave of cryptocurrency ETFs will be coming in 2025, suggesting that Litecoin and Hedera could be the first ones to receive one.

There have also been rumors  that President-elect Donald Trump will add American cryptocurrencies like XRP and HBAR alongside Bitcoin for the Strategic National Reserve.

HBAR Price Retracement

While the weekly time frame chart is bullish, the daily one predicts an HBAR retracement before the upward movement continues. This is because of the wave count and the indicator readings.

The most likely wave count shows that HBAR has completed a five-wave upward movement starting in November.

If so, it is currently in the C wave of an A-B-C correction, which could end at the 0.5 Fibonacci retracement support level at $0.219.

The daily RSI and MACD both imply a correction is forthcoming. The RSI has generated a bearish divergence (green), while the MACD has made a bearish cross (black icon) and is falling.

As a result, the daily time frame predicts another HBAR price decline before the upward trend continues.

Drop Before Continuation

After a massive increase spanning over a month, the HBAR price may have started a short-term correction. HBAR could create a lower low near $0.219 before resuming upward movement.

A breakout above the range high of $0.374 will confirm the correction is over.