Despite forming five consecutive green candles on weekdays, the bullish momentum seems weak concerning the short body and higher tail rejections attached. Furthermore, the Hedera(HBAR) price has recently breached a long-coming resistance trendline, and supply pressure from above teases a price dip to a $2 support zone.
Key points:
- The bullish RSI divergence suggests an overall bullish tendency
- The HBAR buyers are struggling to overcome 50-day EMA
- The intraday trading volume in the Hedera coin is $72.7 Million, indicating a 31.92% gain.
Source- Tradingview
Since the HBAR downtrend began in Mid-September 2021, the coin price action has been confined within a falling wedge pattern. The sellers dumped the altcoin to its current lower low support at $2, indicating a 66% from the All-Time High resistance of $0.52.
The HBAR price gradually narrowed within the descending trendline, and $2 bottom support has resulted in a bullish breakout from the wedge pattern. So far, the post retest rally surged 8%, hitting the 50-day EMA(0.224).
However, the bull run showed multiple higher price rejection candles, suggesting the trades are selling on rallies and could initiate a minor pullback. As a result, the potential retracement could plunge 11.7% to the $2 mark.
A bounce back from this bottom support would indicate that the traders’ sentiment has flipped to buying the dip, suggesting the next bull cycle hit $0.26.
Technical Indicator
- The recovery rally faces strong resistance from the downsloping 50-day EMA, bolstering the possibility for reversal. Moreover, the 200-day EMA at the $0.26 mark provides an important pivotal point for buyers to overcome.
- However, RSI slope forming successive higher highs suggests increasing underlying bullish momentum.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/hedera-price-analysis-hbar-price-teases-a-minor-correction-before-rallying-30/