Key Insights
- Hedera Hashgraph has been one of the best-performing cryptocurrencies over the last few months.
- However, this bullish momentum has slowed down, with an ongoing consolidation on the daily chart.
- This consolidation has taken shape as a bull flag pattern, which is a historically bullish signal.
- Technical and AI predictions show that Hbar crypto could be on its way to hitting the $0.4 mark or higher soon.
Hedera (HBAR) stood out as one of the best-performing altcoins late last year, as investors speculated on continued bullish action for the new year.
However, with January nearing a close, this altcoin’s bullish momentum appears to be nearing a consolidation.
The selling pressure is starting to rise as the token now faces a possible 30% price decline.
Could the HBAR crypto find its saving grace before the bears take over?
HBAR’s Bull Flag Invalidated?
The HBAR Crypto showed strong bullish momentum between the end of last year and the start of the new one.
This especially happened after it rallied to $0.4 on 6 January.
The cryptocurrency then consolidated between $0.35 and $0.37 within a classic bull-flag pattern on the daily chart as illustrated.
For context, a bull flag is typically a continuation pattern.
It is marked by a strong rise in prices (the flag pole), followed by a period of sideways action within a triangular range (the flag itself).
When traders see this pattern, it is usually a signal of further price increases.
The interesting thing about Hedera is how on 20 January, the price fell below the $0.35 zone, which led it further down to retest the $0.31 zone as highlighted by the Fibonacci retracement levels.
This reversal cast doubts on Hedera’s ability to rise further in the short term, but things may not be as bad in the medium to long term.
A 30% Drop Ahead?
Hedera has consistently slid below key support levels over the medium to short terms.
However, the $0.31 level appears strong enough according to the Fibonacci retracement level.
The future of the HBAR crypto will depend strongly on its ability to rebound off this support level and target its next resistance zones, including the $0.35, $0.39 and $0.45 price levels.
On the flip side, the HBAR price could also be looking towards a possible 30% drop, if the $0.31 support fails.
This bearish outlook could, however, change if the buying pressure returns with positive market news like increased demand for ETF approvals.
What Traders Are Saying
Hedera’s relatively bullish perspective has fueled optimism among market participants.
For example, Coinglass data shows that the cryptocurrency’s open interest has grown to $447 million.
Notably, the long/short ratio also shows that around 62% of traders are expecting further price increases, while the remaining 38% are expecting declines.
This bullish sentiment has also shown up in the fear and greed index, which currently reads 75.
The said reading indicates that investors are increasingly bullish on HBAR and are moderately confident in its performance for the future.
This is without mentioning the HBAR price prediction from CoinCodex, which shows that HBAR could be on its way to rising by 23.25% to reach $0.411 by February 2025.
