Hedera (HBAR) Points to Continued Strength as Breakout Gains Traction

Key Takeaways

• Elliott Wave analysis suggests wave 4 correction is complete, with wave 5 potentially underway.
• A descending wedge breakout indicates renewed bullish momentum for HBAR.
• RSI trends upward, signaling improving market sentiment.

After hitting a high of $0.39 in early December, Hedera’s HBAR entered a correction phase that dominated the remainder of the month. Recent technical signals suggest the asset may be transitioning into a new bullish phase.

HBAR Price Analysis

The 4-hour HBAR chart illustrates its December decline following the completion of wave 3 on Dec. 3. The corrective phase, marked by an ABC pattern, saw prices retrace to $0.23 by Dec. 20, testing the 0.618 Fibonacci retracement level.

Subsequent price action revealed an impulsive move, culminating in a breakout and a high of $0.33 on Dec. 25. Another descending wedge followed, but the price sustained a higher low of $0.26 on Jan. 1, hinting at increasing buyer interest.

The Relative Strength Index (RSI) exited oversold regions during this consolidation, pointing to growing bullish sentiment. Additionally, Fibonacci retracements show support near the 0.382 level, while resistance at $0.32 remains a critical hurdle for sustained upside movement.

The transition from bearish to bullish sentiment is underscored by trendlines showing a consolidation phase resolving into an upward breakout. Elliott Wave analysis indicates wave 4 correction is likely complete, setting the stage for an impulsive wave 5.

Volume trends align with improving RSI readings, adding credibility to the bullish outlook. If momentum continues, wave 5 could drive prices toward higher Fibonacci extensions.

HBAR Price Prediction

The hourly chart suggests HBAR may be entering the next phase of its Elliott Wave structure. Following the completion of wave 2, the price broke above its last descending trendline, signaling the onset of wave (iii).

An 11% increase pushed HBAR to $0.30, with Fibonacci extensions aligning with key resistance zones. If bullish momentum persists, the next target could be $0.41, corresponding to the 1.618 Fibonacci extension.

However, if the price fails to sustain above $0.28, downside risks emerge, with $0.26 acting as the first support level. A breakdown below $0.23 could invalidate the bullish scenario, potentially extending the corrective pattern into a larger WXY structure targeting $0.19.

Key Levels to Watch

• Immediate Resistance: $0.30 (breakout confirmation zone)
• Secondary Resistance: $0.32 (0.618 Fibonacci retracement level)
• Major Resistance: $0.38 (1.272 Fibonacci extension for wave (iii))
• Immediate Support: $0.29 (0.382 Fibonacci retracement level)
• Secondary Support: $0.26 (0.5 Fibonacci retracement level)
• Critical Support: $0.23 (0.618 Fibonacci retracement level)