- HBAR price reached a critical resistance at $0.374 after a massive rally since November
- Technical analysis suggests HBAR could complete another short-term decline before resuming its upward trend
- HBAR may find support near $0.219 before potentially breaking out above $0.374 to continue its upward movement
Hedera (HBAR) has seen its price remain steady during a market pullback, but the likelihood of a downtrend resuming is on the horizon. Despite a fall from its yearly high on December 3, the price might experience another short-term decline before it resumes its trend.
HBAR’s Performance Amidst Market Volatility
In the past month, HBAR has performed remarkably well, even outpacing large-cap cryptocurrencies like XRP. The rally peaked at a high of 0.392 on December 3, marking an impressive 820% price increase. However, since then, HBAR has faced a 40% decline, sparking speculation that its correction phase has begun.
HBAR Reaches Resistance
An analysis of the weekly time frame HBAR chart reveals a parabolic increase since November. This upward movement was marked by the HBAR price breaking out from an ascending resistance trend line and the 0.246 horizontal resistance area. Although this growth spurt reached a high of 0.392, the subsequent fall confirmed the 0.374 area as resistance.
Analyst Predictions and Market Sentiment
The market sentiment towards HBAR remains largely positive. Some analysts, noting a hidden bullish divergence in the RSI, predict a trend continuation. Meanwhile, others believe HBAR will resume its rally once it breaks out from its symmetrical triangle. Furthermore, senior ETF Analyst Eric Balchunas predicts a wave of cryptocurrency ETFs in 2025, with Litecoin and Hedera potentially being the first recipients.
HBAR Price Retracement and Potential Correction
While the weekly chart paints a bullish picture, the daily chart suggests a possible HBAR retracement before the upward movement continues. This prediction is based on wave count and indicator readings, suggesting that HBAR is currently in the C wave of an A-B-C correction. If this analysis holds, the correction could end at the 0.5 Fibonacci retracement support level at 0.219.
Conclusion
After a significant increase over the past month, the HBAR price may have started a short-term correction. HBAR could create a lower low near 0.219 before resuming upward movement. A breakout above the range high of 0.374 will confirm the correction is over. However, as always, investments come with risks and past performance does not guarantee future results. Hence, it is advisable to consult with a financial advisor before making any investment decisions.
