Bitcoin’s recent sink to around $40,500 sparked rumors of a possible rejection for a spot Bitcoin ETF, which caused the entire crypto market to plummet. Even Hedera Hashgraph’s HBAR token, which had hit a new multi-year high recently, was not immune to the selloff. This article will analyze the current state of HBAR and determine if it is facing further downside or if there is potential for a rebound.
Despite the recent drop in price, HBAR remains well above its weekly lows and has maintained its position within its current trading range. The recent rally for HBAR was fueled by growing adoption and development activity on the Hedera network. One notable partnership announced in December was with Archax, an institutional-grade digital asset exchange. This partnership expanded support for staking HBAR, making it more attractive to institutional investors and validating Hedera’s protocol.
Additionally, the total value locked (TVL) in Hedera’s DeFi ecosystem has reached new highs, indicating a growing user base and strong fundamentals driving the token’s valuation. New initiatives such as the $1 million metaverse fund through AfroFuture DAO, the NFT campaign “Ashfall,” and support from the US Federal Reserve’s FedNow instant payments system further contribute to expanding Hedera’s presence and utility.
While Bitcoin’s spot ETF-induced correction has slowed momentum, HBAR remains well-positioned for renewed upside once the market stabilizes. The current resistance level for HBAR is at its recent multi-year high of $0.1014, which is in confluence with the extended Fib -0.236 level of $0.1007. Overcoming this resistance could propel HBAR to new highs.
However, with the recent decline of 8.76%, the HBAR price dropped below its horizontal support zone of $0.0924 to $0.0949. This zone may now act as resistance on any upward bounces. The next potential support lies at the 20-day EMA of $0.0866, followed by the more established support zone of $0.0840 to $0.0860. If this support level doesn’t hold, the HBAR price could face a steeper descent towards $0.07, representing a nearly 20% drop from the recent highs.
On the indicator front, the RSI (Relative Strength Index) currently stands at 55.82, down from yesterday’s peak of 70.67. The decline in RSI suggests that HBAR faced rejection at the overbought territory of RSI 70. Additionally, the increasingly negative MACD (Moving Average Convergence Divergence) histogram indicates building downward momentum.
HBAR’s price has experienced a setback due to the broader cryptocurrency market sell-off, but it remains within its current trading range. The key resistance level to watch is at $0.1014, while crucial support levels are at $0.0924 and $0.0840 to $0.0860. The RSI and MACD indicators suggest a bearish momentum, but a decisive breakout past resistance or support could set the trend for HBAR’s next leg.
Traders and investors should carefully manage their risk amidst the current cryptocurrency market volatility. Although HBAR navigates near-term technical levels, it is important to stay informed about upcoming developments and partnerships that may impact the token’s price. With the recent success of meme coins like $PEPE and $BONK, new projects like Meme Kombat are also generating buzz and could impact the meme-powered gaming landscape in 2024.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice.
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