Hedera’s [HBAR] 20% Surge: Will it Break Through Trading Range?

In the 4-hour timeframe, Hedera [HBAR] displayed an inverse head and shoulders pattern. While a bullish breakout towards $0.42 was anticipated, the resistance at $0.32 proved to be a formidable obstacle for the bulls to conquer.

Hurdles in Range Formation – Will HBAR Bulls Push Beyond the Mid-Range Level?

Hedera has been stuck within a trading range over the last month, with boundaries set at $0.255 and $0.339, and a mid-range point at $0.297. Despite the November surge that propelled HBAR above $0.25, trading volume has been relatively low in recent weeks.

Even amidst the range-bound movement, the daily RSI stayed above the neutral 50 mark, indicating prevailing bullish momentum. However, this momentum may not be sustainable without a breakout accompanied by significant trading volume. Traders are advised to approach the current range cautiously and position themselves in swing trading positions accordingly.

A closer inspection of the 4-hour chart reveals clearer obstacles ahead. While facing resistance at the $0.344 range high, HBAR encountered strong pushback in the $0.32-$0.324 range. This resistance prompted a retest of the range lows before a recent rebound.

Despite the recent 20% surge from its lows, the lack of substantial capital inflows was evident based on the CMF indicator. The MACD, while staying close to the neutral zero level in recent weeks, displayed a bullish crossover signaling upward momentum. The DMI also indicated the initiation of a robust uptrend on the 4-hour chart.

The liquidation heatmap pointed towards a potential short-term bearish reversal around $0.337, as liquidity accumulated in the $0.26 zone over the previous two weeks was wiped out on Monday with a swift bullish turnaround.

The $0.33-$0.337 liquidity cluster stands as the immediate target zone for Hedera’s price. A move towards this range might lead to consolidation and a pullback due to the absence of significant buying pressure to sustain further upward movement.

Disclaimer: The information provided is purely the writer’s opinion and should not be construed as financial, investment, or trading advice.