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.
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.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
