Technical Analysis: Hedera (HBAR) Price Prediction

Technical Analysis: Hedera (HBAR) Price Prediction

6 months ago

Built on the hashgraph distributed consensus algorithm, Hedera brings efficiency, security and stability to the table. But is that enough for HBAR to be a crypto contender? Let's find out!

Technical Analysis: Hedera (HBAR) Price Prediction


Hedera (HBAR), is a public decentralized network where you can build secure, fair apps, with a real-time consensus. HBAR is the native token of the Hedera ecosystem. It is one of the most used, sustainable, public networks that allows for the creation of decentralized apps (dApps).
The HBAR token plays dual roles in the ecosystem where the most important one is powering smart contracts, storage, and transactions. HBAR also helps secure the network as users can stake their tokens to assist in the decentralization and security of the network.
Hedera is unique because of its hashgraph technology. This technology allows for HBAR's low transaction cost, speed, and scalability. Some of the services that HBAR tokens can utilize are minting NFTs, consensus services, and decentralized file storage.
In this technical analysis, we will use multiple technical indicators to analyze the price of HBAR in multiple time frames and determine its possible future movements.

At the time of this writing, HBAR is ranked the 33rd largest cryptocurrency, according to CoinMarketCap. The market cap is sitting around $4 billion.

HBAR claims to be a third-generation blockchain. With Hashgraph network, it is seeking to serve as a platform in which anyone can transact. Is this enough and what does HBAR have for us in 2022? Let's take a look at the charts!

HBAR/USDT on a Monthly Chart

Using the logarithmic chart, we get a clear long-term picture.

Looking at the monthly time frame, we can see the bulls are in full control. HBAR is now looking to confirm support, with a potential double bottom.

When you look at the left side, you also see a similar structure play out before. HBAR likes double confirmations before making a move. The last time we saw HBAR make a move was back at the beginning of 2021. It saw an incredible 1,000% increase!

The bulls need to regain that control at this level to confirm support. If this important level is lost, HBAR could see a steep sell-off. However, there are no confirmations of direction yet.
The structure we see in 2021 shows that it took roughly three candles to confirm support. History doesn't always repeat itself but it does often rhyme. The bulls have a couple more months to flip the script. Otherwise expect to see lower lows. A look at the lower time frames can give us a better view.

Let's take a closer look!

HBAR/USDT on a Weekly Chart

Sticking to our logarithmic chart, we can have a better look at the using the weekly time frame. You can see that the price is establishing a potential double bottom. The last time it was at this level, there was major consolidation before the next move.
Let's check the second bottom from the previous support level at $0.03 and compare it with today's price action! The last time it was sitting at this level, it formed a Doji-structured candle. This time we are floating slightly above the support zone and have formed a Doji candle. Even though there is no confirmation of the next direction, we do see some early signs of bull regaining control. The bulls need to take action or lose this critical level.

A confirmation of support at this level sets HBAR for a retest of the range resistance. However, a loss of this level could send the price towards the $0.14 zone.

HBAR/USDT on a Daily Chart

We are now shifting down to the daily time frame and using the logarithmic chart. This time frame gives us a better look at when to pull the trigger.

Here, we get a better picture of the downtrend being respected. The price action was recently rejected at $0.22. In the short term, the bears will remain in control until we see the local high get taken out. If there is a close above resistance, expect the price to revisit $0.25. However, if there is a rejection at this level, expect the price to revisit the $0.20 support zone.
Let's wait for confirmation of direction before pulling any triggers. For now, the bears are in control. However, a close above $0.22 will change the game.

HBAR/BTC on a Weekly Chart

Last but of course not least, HBAR’s comparison to BTC using the logarithmic chart. The price action has been accumulating so far.

You can see that the last time HBAR made any significant moves against BTC was back in March. Since then, the price has been accumulating into a tighter range.

HBAR is holding its ground against BTC. A close above its minor resistance at 630 satoshis is a good sign the bulls are in control. Rejection from this level and price action revisits the 500 sats zone.

HBAR 's accumulation will lead to a breakout.

Summarizing Everything for People in a Rush

  • HBAR on the monthly time frame shows that the trend is controlled by the bulls.
  • HBAR on the weekly time frame shows that there is no confirmation of the next direction.
  • HBAR on the daily time frame shows that the bears are in control.
  • HBAR on the BTC weekly time frame shows that HBAR 's accumulation will lead to a breakout.

Remember that this is all based on the subjective views of the writer. As always do your own research.

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