Why Did Hedera's Price Suddenly Bounce? | Credit: Hameem Sarwar
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Key Takeaways
Hedera (HBAR) trades inside a long-term descending triangle.
A Hedera Exchange-Traded Fund (ETF) will go live today.
Can HBAR capitalize on its momentum and begin a trend reversal?
Hedera (HBAR) jumped 10% today, resisting the crypto market correction that saw Bitcoin (BTC) fall by more than 1%.
Trading activity also spiked, with HBAR futures volume soaring 200% to $625 million as traders piled in to ride the volatility.
The sudden rally appears to be news-driven, following the announcement that the Canary HBAR ETF will launch on Tuesday under the ticker HBR.
HBAR has been on a quiet rebound since Oct. 10, and this latest catalyst could help confirm a bullish trend reversal for the rest of the year.
Let’s take a closer look at the charts and what traders should be watching next.
Hedera’s Technical Analysis
The weekly time frame chart shows that Hedera has fallen under a diagonal resistance trend line since December 2024, failing to break out from it multiple times (red icons).
Throughout this time, the HBAR price has bounced at the $0.13 horizontal area, creating a base of support.
The area prevented a breakdown on Oct. 10, since the HBAR price bounced despite creating a massive long, lower wick (green icon) that briefly hit $0.08.
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The diagonal resistance and the $0.13 area create a descending triangle, considered a bearish pattern.
If it plays out, it will mean that Hedera will likely to break down from the triangle, falling to its pre-breakout lows at $0.05.
However, Hedera price bounced today and is currently above $0.20, moving toward the diagonal resistance at $0.23.
Despite this bounce, the trend cannot be considered bullish until the HBAR price breaks out from the resistance, confirming the end of its downward trend.
Momentum indicators echo this sentiment. The Relative Strength Index (RSI) has nearly hit 50, and the Moving Average Convergence/Divergence (MACD) is 0.
If the price of Hedera breaks out, the RSI will surge above 50, and the MACD will move above 0.
On the other hand, failure to break out will cause a rejection at the key indicator thresholds, followed by a drop into bearish territory.
As a result, whether the HBAR price breaks out from its diagonal resistance or not will be key to determining if the future prediction is bullish or bearish.
Why is HBAR Going Up?
While the weekly chart gives mixed readings, the short-term 12-hour one leans bearish.
The wave count shows a completed, upward A-B-C correction (green) followed by a five-wave downward movement (red).
These signs suggest the long-term trend is bearish, and today’s news-driven Hedera price increase is corrective.
So, despite Hedera’s impressive surge, the wave count and chart analysis suggest the price will reach a top soon and resume its previous downward trend.
Hedera’s ETF rally
Despite today’s surge, Hedera’s rally appears to be driven more by news than price movement.
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.
