The cryptocurrency market is buzzing with excitement as Hedera (HBAR) sets up a promising bullish scenario. A classic cup-and-handle pattern, known for signaling potential trend continuation, has formed on the charts, leaving traders wondering: could HBAR see a 30% surge soon?
Understanding HBAR’s Bullish Outlook
HBAR has steadily gained momentum over the last few weeks. On the week of August 25, the cryptocurrency experienced significant exchange outflows of $15.94 million, highlighting accumulation signals. Fast forward to the week of September 8, and outflows dwindled to $7.51 million, a decline of 53%. This suggests that while early traders booked profits, there’s still strong dip-buying activity driving HBAR forward.
A key indicator supporting this trend is the Money Flow Index (MFI). Rising MFI readings indicate increased buying pressure, showing that despite profit-taking, fresh investors are stepping in to purchase pullbacks. Additionally, the Relative Strength Index (RSI) reveals bullish divergence as higher lows in RSI align with lower price lows. This signals a possible reversal back into an upward trend.
Technical Analysis: The Cup-and-Handle Pattern
The cup-and-handle pattern forming on HBAR’s chart is a bullish formation that often forecasts extended upward movements. The handle is currently shaping around $0.243, with dips toward $0.238 still within healthy range. However, critical levels need to be respected for the bullish narrative to hold.
If HBAR stays above $0.232, it confirms the bullish structure, potentially leading to price targets between $0.305 and $0.314. Breaking above $0.250 would act as further confirmation of this scenario. Traders should also note that dropping below $0.232 could invalidate the bullish pattern entirely, leading to potential downward risks.
Momentum Indicators Supporting the Rally
Momentum is another factor in favor of HBAR’s price rally. Apart from the bullish divergence in RSI, higher lows in momentum show that bearish pressure is weakening. Month-to-month, HBAR has only seen a modest drop of 2%, keeping the longer-term bullish narrative intact.
To take advantage of the market trends, you might consider tools that help you stay updated on real-time price movements. A great example is TradingView, which provides charting tools and market signals to help you make informed decisions.
Final Thoughts: What Lies Ahead for HBAR?
While HBAR’s bullish pattern offers promising opportunities, traders should remain vigilant. The $0.232 level will be key in determining whether HBAR continues its rally or faces a deeper pullback. On the flip side, breaking above $0.250 could lead to significant gains, making HBAR one of the cryptocurrencies to watch closely.
To stay ahead in the volatile crypto market, sign up for daily market insights and watch Hedera closely as it navigates through these defining moments.
