Hedera Price Outlook Strong as TVL Growth Supports Bullish Trend

Hedera price action has shown promising bullish potential, with Elliott Wave structures signaling a potential uptrend.

The cryptocurrency has approached key resistance at $0.28559, which, if broken, could trigger significant gains. Indicators like the RSI and stochastic support further upward movement, with the volume profile suggesting strong momentum.

However, recent bearish price action has seen a decline to $0.2468, accompanied by a decrease in volume, signaling reduced buying interest. Despite the short-term downtrend, the rising Total Value Locked (TVL) on its platform points to growing adoption, boostingg the case for a potential rally toward $1.

Hedera Price Outlook Strong as TVL Growth Supports Bullish Trend

Hedera recent price action has shown an encouraging bullish outlook, particularly from a technical analysis perspective. The chart, shared by analyst BigMike7335, displays a well-formed Elliott Wave structure, indicating that it is likely in an upward trend.

Source:x

The “Macro 1” and “Macro 2” phases are prominent on the chart, which suggests the cryptocurrency is following a wave pattern that could lead to further upward momentum. Currently, the price is approaching a critical resistance level at $0.28559, which, if breached, could trigger an additional move upward.

The strength of the Elliott Wave structure supports the view of potential further price gains. These wave formations have historically been used to predict trend continuation, and the current setup suggests that it may continue to rise soon.

In addition to the Elliott Wave structure, the stochastic and RSI indicators also show strong bullish momentum, which further supports the view of continued upward price movement. However, the price action must break key resistance levels for this trend to fully unfold.

Volume Profile and Resistance Levels

The volume profile at the bottom of the chart provides another clue about the potential for continued upward movement in HBAR. Analyst BigMike7335 has pointed out that the volume profile is showing healthy buying interest at lower levels, with volume increasing as the price moves toward resistance.

Once this resistance is cleared, there is a clear path for further gains, as indicated by the volume dynamics. The volume analysis suggests that market participants are increasingly becoming confident in the long-term prospects.

Furthermore, the price action nearing resistance at $0.28559 is crucial. If it successfully breaks this barrier, the cryptocurrency could experience a stronger bullish run. A breakout above this resistance could trigger an uptrend, moving into less congested territory.

TVL Growth Indicates Increasing DeFi Adoption

The total value locked on the platform has shown a steady rise, which aligns with the overall bullish trend observed. Analyst WSB Trader Rocko has highlighted the significant increase in TVL since May, with a noticeable surge in recent months.

Source:X

This growing TVL indicates that decentralized finance (DeFi) protocols on the network are seeing increasing adoption. As more users engage with these DeFi platforms, the demand for HBAR, the native token, is likely to grow.

With the TVL continuing to rise, the fundamentals behind the blockchain appear strong, and the cryptocurrency’s growth is likely to be sustained. The increased TVL also reflects the platform’s ability to attract more developers and users, further supporting a positive outlook for the price.

Short-Term Downtrend Could Provide Buying Opportunity

While the long-term outlook for Hedera remains strong, recent price action suggests that it is currently experiencing a short-term downtrend. After reaching a high of $0.270, the price has dropped to approximately $0.2468 by August 12. This decline has been accompanied by a reduction in trading volume, indicating lower market activity.

Source: BraveNewCoin

Despite the recent dip in price, the volume decrease suggests that the market might be losing interest in selling at these levels. This could indicate that a reversal or consolidation phase may be approaching. If the price stabilizes and volume picks up, it could find a support level that would set the stage for a potential rebound.