Key Takeaways
Why did HBAR see a nearly 10% move in recent days?
Its short-term momentum shift was likely the product of a market-wide sentiment shift, spurred by Bitcoin’s rally to $116k.
Can HBAR bulls sustain this momentum?
The buying pressure was weak, and needs to increase dramatically to sustain an uptrend. The price action shows that this could occur soon, but until then, traders need to be patient.
Hedera [HBAR] rallied 9% in three days, but its trading volume has been well below the recent average. Does that mean the weekend rally was an unsustainable move, or can HBAR bulls’ fortunes change?
Weekly chart keeps structure intact
Source: HBAR/USDT on TradingView
The weekly timeframe showed a bullish swing structure, based on the rally in 2024. The 78.6% Fibonacci retracement level was not broken, and the low that started the rally at $0.0417 was not tested either.
Even though the internal structure turned bearish mid-year, it flipped bullish again in late June when HBAR broke above the $0.228 high and reached $0.30. Despite volatility in recent weeks, the weekly session close still preserved the bullish framework.
The RSI showed momentum was slightly in favor of the sellers, but the OBV has not fallen to new yearly lows. This meant that selling pressure was not overwhelming.
This, combined with the structural recovery, gives room for cautious optimism.
However, short-term price action painted a different picture.
The immediate HBAR price targets to keep an eye on!
Source: HBAR/USDT on TradingView
The 1-day chart showed that a bearish structure was in place. Swing traders would want to wait for this to change before looking to bid.
Immediate resistance stood at $0.182, with a stronger barrier at the $0.233 swing high from early October.
A daily session close above $0.182 would mean that swing traders can look for longs, targeting $0.233. Beware that the $0.195-$0.298 area could stall bullish momentum.
Meanwhile, technical indicators were beginning to shift in favor of the buyers.
For instance, the OBV was neutral over the past week, showing bulls and bears were equally matched. This might change if $0.182 is flipped to support.
Also, the RSI approached the neutral 50 line, and if it climbs above 50, it would be an early sign of a bullish momentum shift.
Liquidation data hints at northward pressure
The 1-month Liquidation Heatmap showed that HBAR has been moving northward over the past five days, targeting the cluster of short liquidations above the price. The next band of liquidity lay at $0.185, and another thinner band at $0.192-$0.2.
Therefore, the short-term price targets for HBAR are $0.182 and $0.2. A rally past $0.233 would be a strong sign that Hedera was ready for an uptrend.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
