Hedera (HBAR), the enterprise blockchain network entered this week with a 100% surge to $1.810 on May 2, a 2-year high. Driven by the anticipatory news of Blackrocks involvement in Hedera, which was later clarified to be false.
This revelation led the price to correct back to a low of $0.095 causing massive sell-offs and slashed trading volume.
The charts of HBAR speak for a short bearish trend with a possible reversal to $0;18.
HABR/USDT 4-hour chart formed an Upward Channel pattern followed by a potential breakout from $0.12 to the current $0.106 with a 24-hour drop of 3.7%,. After rejecting the $0.12 resistance the price dips created a downturn to break cruical support $0.114. The bear rally continues with a lower support level near 200 SMA of $0.08.
Is the Reversal Possible?
Though there is a downtrend across all time horizons, we also see the MACD for HBAR now is negative below the signal line and RSI is in the neutral zone at 42.56, which is a setback that may attract new buyers.
HBAR is currently experiencing sell-offs with a very high volatility of 15%, most of the moving averages favor a buy signal and daily oscillators in the neutral state. Currently, there is no favorable outlook for Hedera Hashgrah.
The trade setup looks entranced for trend traders as the price rejects sideways trading and the bearish trajectory may push the HBAR back to the accumulations zone at $0.08 again. A rebound from here is expected.
The analysis suggested a psychic stop loss at $0.1 or $0.09 or wait for another breakout.