Hedera (HBAR) continues to attract attention in the crypto market. With its price hovering around $0.24, HBAR has seen a modest 2% gain in the past day, but the last three months have shown an impressive 66% growth. However, this calm period might not last long as critical indicators point to a potential breakout.
The Role of Chaikin Money Flow (CMF)
One of the key signals driving speculation is the Chaikin Money Flow (CMF), a metric used to identify whether buying or selling pressure is dominating the market. Between September 11 and September 17, the CMF surged from -0.06 to +0.16, signaling increased buying interest from whales and large investors. This kind of activity strongly suggests accumulation by long-term holders betting on an imminent breakout.
What the Smart Money Index Reveals
Another metric to watch is the Smart Money Index (SMI). Unlike CMF, the SMI focuses on the activity of short-term traders looking to profit from market rebounds. While it has climbed close to 1.00, it has yet to cross the critical 1.004 level. This indicates that short-term investors are cautious, waiting for a confirmed pattern breakout above a key level before making significant moves.
The Golden Crossover and Cup-and-Handle Formation
Looking at HBAR’s technical charts, a bullish “golden crossover” is forming on the 4-hour timeframe. This occurs when the 100-period Exponential Moving Average (EMA) crosses above the 200-period EMA, signaling strong upward momentum. Additionally, on the daily chart, HBAR has broken out of the handle of a classic cup-and-handle pattern. This pattern often predicts a price rally and aligns with the increased whale activity identified in CMF.
The critical neckline level to watch is $0.25. A daily close above this price could validate the breakout and push HBAR toward the $0.31 target. However, traders should also consider potential downside risks. If the price dips below $0.23 or $0.22, it could signal weakening momentum. A drop under $0.21 would invalidate the bullish setup entirely.
How to Stay Informed
For those keeping an eye on HBAR and other promising altcoins, staying informed is key. Tools such as the BeInCrypto Daily Crypto Newsletter provide insights and updates on market movements and technical trends. Subscribing to such services can help traders make more informed decisions during volatile times.
Consider Tools to Monitor Market Trends
If you’re serious about trading or investing, leveraging technology to monitor the market can provide an edge. For example, the TradingView Charting Platform offers advanced tools for analyzing patterns like golden crossovers and cup-and-handle setups.
Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Make sure to conduct thorough research and consult with a financial professional before making any trading decisions.
