Hedera (HBAR) Price Exceeds Expectations, up 120% but Showing Overextension

Key Takeaways

• HBAR rallied 120% from $0.055 to $0.12 this week.
• A daily RSI of 85% signals overbought market conditions.
• Corrections are likely; the target is $0.084 and $0.074.

The Hedera (HBAR) price has recently shown significant momentum, increasing parabolic from last week. After a prolonged bear market and a parabolic rally from $0.041 to $0.12, the token shows signs of exhaustion as it trades near $0.11.

Overextended technical indicators, such as a Relative Strength Index (RSI) of 85%, suggest that the uptrend may have reached its limit.

A corrective move appears imminent, with key Fibonacci retracement levels providing potential downside targets.

HBAR Price Analysis

Since hitting its all-time high of $0.58 in September 2021, HBAR has been in an extended bear market, eventually reaching a low of $0.036 on Jan. 1, 2023.

This price level marked a return to its pre-bull run zone. Following this low, HBAR traded sideways, consolidating until October 2023, when early signs of a potential uptrend appeared.

This movement culminated in a high of $0.14 on March 17, 2024, the strongest price level since May 2022.

This milestone hinted at the possibility of a new five-wave bullish impulse. However, subsequent corrections brought HBAR back to its horizontal support zone, raising doubts about the sustainability of this bullish phase. Rebounds from support levels in August and September and an oversold RSI on the daily chart suggested a potential bullish reversal.

On Nov. 4, HBAR revisited the upper limit of the horizontal zone, dropping to a low of $0.041. This marked the end of its downtrend, which began on April 23, and signaled the start of a new uptrend.

Since then, the price has made a parabolic runup, reaching a high of $0.12 by Nov. 18. 

It is trading slightly lower at $0.11, having reached our previously outlined target at the horizontal zone.

The price is getting overextended, as signaled by the daily chart’s Relative Strength Index at 85%. These signs imply that the uptrend has reached its limit. 

HBAR Price Prediction

The hourly chart indicates that HBAR likely completed a five-wave upward structure with the recent spike.

The subsequent sharp pullback is interpreted as the first sub-wave of a corrective ABC pattern, although further confirmation is needed.

Since last Thursday, when a minor pullback was seen to a low of $0.055, the price increased by 120%, measured to today’s peak.

This was another five-wave advancement of the lower-degree count of the ending wave. 

We are now anticipating a descending move likely to have strong momentum as the price previously increased parabolically.

Our first target is at the 0.5 Fib retracement level of $0.084, while our next is at the 0.618 of $0.074

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

See more

[email protected] LinkedIn