While Hedera suffered a drop in its price towards critical support, the crypto soared to several times its value. Let's take a look at the future prospects for the HBAR.
Location of Hedera (HBAR)
After the overall rise of the crypto market, Hedera appreciated, crossing its previous high of $0.075 at the end of the year. It is from this level that the cryptocurrency reached $0.10. The HBAR had to start again from $0.067 to break through its resistance and establish a new high at $0.14. After an overall decline in the cryptocurrency market, Hedera corrected and once again reached its last support at $0.067. It was visible to see buying interest at this level, which was saved after a consolidation around $0.080. It is interesting to note that this stabilization took place over an area of significant values, in addition to being at the level of the 200-day moving average. A few days later, the HBAR Foundation hinted that Ownera, Archax and BlackRock are associated with the company, which did not go unnoticed.
In fact, the crypto doubled in price, going from $0.09 to $0.18 in one day. Naturally, such a movement eventually faded. At the time of writing this article, Hedera is listed at $0.11. Despite this recent drop in interest, it seems that the cryptocurrency is still maintaining an underlying upward trend. The repositioning of HBAR above its 50-day moving average as well as the resumption of its bullish momentum, as evidenced by oscillators and its price itself, are comforting signs. If this momentum is sustained, this could prove promising for Hedera's price.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (HBARUSDT)
While open interest in HBAR/USDT contracts was platonic, it suddenly followed its price trend by increasing 600%. The latter today amounts to nearly $93 million in outstanding positions on perpetual contracts associated with the HBAR. This increase is due to fundamental factors which themselves caused a clear drop in the HBAR/USDT funding rate, thus favoring the number of new positions on these contracts. On the liquidation side, we can observe that there were first short positions before causing liquidations on the last buyers.
The three-month HBAR/USDT liquidation heatmap reveals that the liquidation zone around $0.08 has generated buying interest. Indeed, upon reaching this level, the price of the cryptocurrency stabilized before undergoing its final upward movement. Today, the most significant liquidation zones are at $0.086 and $0.075. Higher up, we can note the subtle zone of $0.13. Price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for Ethereum. These areas therefore represent a crucial point of interest for investors.
The assumptions for the Hedera course (HBAR)
- If the Hedera price remains above $0.10, we could anticipate a return to $0.14. The next resistance to take into account, if the bullish movement continues, would be $0.18. Even higher we can note the $0.27. At this stage, this would represent an increase of more than +137%.
- If the Hedera price fails to stay above $0.10, we could envisage a return to around $0.080. The next support to consider, if the bearish movement continues, would be in a price range between $0.060 and $0.67. At this point, that would represent a drop close to -47%.
Conclusion
Despite the fluctuations inherent in the cryptocurrency market, Hedera has shown signs of resilience and growth potential. Its recent association with influential entities and the resumption of a strong trend show that Hedera may well continue to strengthen its position in the market. However, while optimism is in order, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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