Support levels are crucial for Hedera (HBAR) as bullish momentum returns to the market following a rebound from $0.04. The past month has seen a strong surge in HBAR, marking an end to its bearish phase.
A crossover of the 20-day EMA above the 50-day EMA signals a potential retest of key resistance levels, prompting questions about the sustainability of this bullish run. Will the bulls maintain their momentum and push for further gains, or will the bears take control once again?
Reasons behind HBAR’s Potential Price Movement
After a drop to $0.04, buyers stepped in to counter selling pressure, leading to an uptrend within an ascending channel and a 35% gain in just over three weeks for HBAR.
This upward movement could test the crucial resistance range of $0.064 to $0.068, located slightly below the 200-day EMA (green).
The recent surge also witnessed the 20-day EMA crossing over the 50-day EMA, signaling a bullish trend in the short term. However, failure to breach the $0.064-$0.068 resistance zone might indicate an imminent pullback to the lower boundary of the ascending channel.
Currently trading around $0.0584, HBAR aims to continue its upward trajectory, with a breakthrough above $0.068 potentially paving the way for a rally towards $0.0711 (close to the 200-day EMA).
The daily RSI stands at around 57 after exiting overbought territory, and a drop below 50 could confirm a near-term reversal. Meanwhile, the MACD reaffirms a bullish stance, but traders must watch for a potential bearish crossover with the signal line to assess the likelihood of a short-term decline.
Insights from Derivatives Data
The long/short ratio for HBAR over the past 24 hours stands at 0.922, indicating a slight dominance of short positions. However, on Binance, the long/short ratio for HBAR/USDT sits at approximately 2.29, reflecting a strong bullish sentiment among traders on that platform.
Latest data from Coinglass shows a 4.61% decrease in HBAR’s volume and a 1.10% decline in open interest.
Despite this slight contraction, the current open interest of $34.87M suggests active trading, with potential shifts in sentiment likely to impact volatility.
Traders are advised to monitor Bitcoin’s movements closely and assess overall market sentiment before initiating new positions in the short term.