Hedera [HBAR] enthusiasts have witnessed a resurgence in market activity as the altcoin demonstrated a strong bounce back from the critical $0.04 support level. In the recent weeks, HBAR displayed a significant bullish upsurge, marking an exit from its extended downtrend.
With the 20-day EMA surpassing the 50-day EMA, the current bullish trend sets the stage for a possible retest of crucial resistance levels. The pertinent question now arises: Will buyers be able to sustain this positive momentum and strive for further advancements, or will sellers step in to exert their influence?
Factors Influencing HBAR’s Price Movement
Following a dip to $0.04, market participants stepped in to counter the downward pressure, resulting in HBAR’s recovery within an ascending channel and a commendable 35% gain in a span of just over three weeks.
This upward trend may trigger a potential revisit of the critical resistance range between $0.064 and $0.068, situated slightly below the 200-day EMA (green line).
Furthermore, the recent surge in prices led to the 20-day EMA crossing above the 50-day EMA, signaling a short-term bullish trend. Nevertheless, a failure to breach the $0.064-$0.068 resistance zone might signal an imminent downturn. In such a scenario, a retracement towards the lower boundary of the ascending channel could materialize.
Currently, HBAR is trading around $0.0584, with buyers eyeing a continuation of the upward trajectory. A breakthrough above the $0.068 barrier could pave the way for a further upswing towards $0.0711 (close to the 200-day EMA).
The daily RSI hovers around 57, having retreated from the overbought region. A potential drop below the 50 mark could confirm a short-term reversal on the charts.
Similarly, although the MACD reaffirmed its bullish stance, buyers should remain vigilant for a potential bearish MACD and signal line crossover as a signal of a possible downturn.
Insights from Derivative Data
The long/short ratio for HBAR in the last 24 hours stood at 0.922, indicating a slight tilt towards short positions. Conversely, the long/short ratio for HBAR/USDT on Binance sat at approximately 2.29, showcasing a strong bullish sentiment among traders on that platform.
As per the most recent data from Coinglass, HBAR’s trading volume dipped by 4.61%, accompanied by a 1.10% decrease in open interest.
Despite this minor drawback, the current open interest figure of $34.87 million signifies robust trading activity, hinting that any shift in sentiment could potentially trigger heightened volatility in the market.
It is advisable for traders to closely monitor Bitcoin’s price movements and gauge the overall market sentiment before considering any near-term trading positions.