Panicked HBAR Investors Can Exit At Upcoming Relief Rally

The seven consecutive red candles from the last swing high resistance of $0.0842 register a 22.5% loss. However, the Hedera (HBAR) losing streak halted at the local support of the $0.064 mark. The coin price bounced back from this support, with low volume activity indicating a relief rally before the continuation of the price correction.

Key points: 

• The ongoing correction has tested the 0.786 Fibonacci retracement level near the $0.064 mark.
• The $0.064 support will offset the July month recovery
• The intraday trading volume in the Hedera coin is $24.5 Million, indicating a 37% gain.

Source- Tradingview

From early July to August, the HBAR/USDT pair witnessed a steady recovery, shaping into a rising channel pattern. The bull run pushed the coin price to a record high of $0.838, accounting for a 46.1% loss.

However, the very nature of the rising channel is to accelerate the bearish momentum once the price breaches its support trendline. Thus, as bullish momentum dried up at the combined resistance of the ascending trendline and $0.838, the HBAR price triggered another pullback.

Amid the correction sentiment in the crypto market, the bearish pullback breached the pattern’s support trendline on august 17th. Moreover, the recent news that the US Fed may increase its interest rate by 0.75% by September fueled the ongoing selling pressure.

The post breakdown fall tumbled the HBAR price by 11.2%, where it hit the $0.06 demand zone. This local support reverted the 4% up today, but the 37% drop in volume indicates this is a temporary rally.

With sustained buying, the relief rally may retest the $0.07 or $0.077 resistance, where the traders can exit their position if they believe the HBAR price plunges lower. The potential downfall may plummet the prices to $0.058.

Though things look better on the seller’s side, if a relief rally provides a candle closing above $0.865 will invalidate the bearish thesis.

Technical Indicator

RSI indicator: the daily-RSI slope showcased a sharp dive below the neutral line, indicating the market sentiment has flipped bearish.  

EMAs: the ongoing correction breached the 20-and-50-day EMAs forming an additional barrier against a potential relief rally. 

• Resistance level- $0.07, and $0.077
• Support level- $0.064 and $0.058