- HBAR’s breakout from the descending channel signaled a potential trend reversal and golden cross
- Rising social dominance and Open Interest alluded to market confidence
At the time of writing Hedera [HBAR] was trading at $0.1703, up 14.60% in the last 24 hours, with a remarkable 234% hike in trading volume to $1.63 billion. This surge followed a significant breakout from a descending channel and the formation of a golden cross – Both bullish indicators.
With HBAR nearing a key resistance at $0.188, traders are asking – Can it break through this level and trigger a rally towards $0.27?
Breaking the downtrend – Is HBAR ready for more?
HBAR’s chart revealed a clear breakout from a long-standing descending channel, signaling a potential shift in market sentiment. After months of downtrend, this move indicated that HBAR could be reversing its bearish trajectory.
The breakout is particularly significant, especially as it aligns with the formation of a golden cross – A well-known bullish pattern. Therefore, the next key challenge is the resistance at $0.188. A breakout here could confirm a trend reversal and pave the way for further gains towards 0.27.
Source: TradingView
Are technical indicators confirming the bullish trend?
HBAR’s technical indicators highlighted additional confidence in the bullish move. The Relative Strength Index (RSI), for instance, had a reading of 72.47 at press time, indicating that HBAR was in overbought territory. While this suggested strong buying pressure, it also meant the market could face a slight pullback. However, as long as the RSI stays above 70, HBAR can maintain its upward momentum.
Additionally, the Moving Average Convergence Divergence (MACD) was positive, with a value of 0.00327 – A sign of sustained bullish sentiment.
Simply put, technical indicators indicated that HBAR’s momentum could persist as long as these conditions hold.
Source: TradingView
Social dominance – Is HBAR gaining traction?
Social dominance increased sharply from 1% to 1.5%, reflecting growing interest on social media platforms. This uptick in mentions is a positive signal, as higher social dominance often leads to higher trading volumes and price action.
The rise in community engagement suggested that Hedera has been gaining traction among both retail investors and traders. This could further fuel its price movement in the short term.
Source: Santiment
Market sentiment – Open interest surge?
Market sentiment has also been turning increasingly positive for HBAR, with Open Interest surging by 29.30% to $189.52 million.
This indicated that more traders are now positioning themselves for further price hike. An uptick in Open Interest is typically a bullish sign – A sign of confidence in Hedera’s future price action. Consequently, this surge suggested that traders expect HBAR to push past its critical resistance level of $0.188.
Source: Coinglass
Read Hedera’s [HBAR] Price Prediction 2023-24
Can Hedera break through $0.188?
HBAR’s breakout from the descending channel, strong technical indicators, and growing social dominance, all pointed to a bullish outlook. However, the key resistance at $0.188 must be overcome to sustain some momentum.
If HBAR can clear this level, a move towards $0.27 will be likely. With positive market sentiment and technical backing, Hedera has the potential to continue its upward trajectory. Especially if it holds above its press time support and breaks through the resistance.
