Hedera (HBAR) Surges Following Hyundai Partnership and FedNow Inclusion
HBAR surges with major adoption announced. Will it continue to rise? | Credit: Shutterstock
Key Takeaways
- Hedera receives major adoption
- Price recovered by 86% from June
- Key resistance reached
- Chart analysis shows further upside potential can be seen
The Federal Reserve launched FedNow in July. FedNow is a payment service that enables financial institutions to perform instant transfers and payments. In order to do so, the FED is looking into technological solutions that are going to facilitate these translations. Among others is Dropp – a Hedera-powered micropayments platform that has now been added to their showcase .
In other news, car manufacturers Hyundai and KIA have introduced a CO2 Emission Monitoring System built on the Hedera network.
From yesterday, August 15th, opening, the price of Hedera rose by 32.88% on this positive news and is further heading upward. Overall its an 86% recovery from its low in June, but can it continue moving up?
HBAR Price Analysis
From its all-time high of $0.58 made in September 2021, the price of HBAR was in a bear market, reaching $0.036 at its lowest point on January 1 this year. These low levels were last seen in the consolidative range before the price made a bull run and have now again been validated as strong horizontal support.
From May 2022, it has formed a descending channel, with its resistance level now being tested. The price is still in a macro downtrend, but a first higher low was seen on June 10 compared to the January low.
If the price continues moving upward and breakout above the descending channel’s resistance level, it will make a higher high than the one in February of $0.099 and signal the start of a bull cycle.
The daily RSI is starting to enter the overbought zone as it is currently sitting at 75%, which could be a sign that the price doesn’t have much more room to the upside at this stage. Interestingly enough, the moving averages 200 and 50 haven’t shown a golden cross still.
Zooming into the 4-hour chart, we can see that there is a possibility that the price started its bullish cycle in January. From its January low to February high, we could have seen wave 1, followed by an ABC correction that ended as a higher low in June. That would mean that the increase seen since is wave 3, which would be expected to continue moving upward to $0.14.
However, the price is currently interacting with the significant 0.618 Fibonacci extension level that might serve as resistance. If the resistance in the intersection with the descending trendline proves stronger than the current momentum, a rejection would be made and the price increase will be stopped.
In the bullish case, the $0.14 target would only be the optimal point of wave 3 but would be expected to continue increasing for another higher high potentially to $0.16 after a consolidation for wave 5.
Conclusion
Hedera has seen some important adoption from FED and automotive industry giants and the price action reflected that. Would that be enough to propel the price further we are yet to see.
If the price manages to break the significant resistance it has now encountered, further upside would be expected as it could signal the start of a new bull cycle for HBAR.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
