Hedera (HBAR) has demonstrated a modest increase of approximately 1% over the past 24 hours, reflecting a consistent upward trend that has built strength quietly. During the last week, HBAR’s price has surged by 11.3%, indicating a resurgence in buyer interest. Although the past month and quarter have shown negative performance, recent trading patterns hint at a potentially bullish outlook, suggesting that HBAR might soon attempt a breakout.
Chart analysis reveals the formation of a bullish flag-and-pole pattern on the 12-hour chart. This pattern typically follows a significant upward movement—the pole—followed by a controlled pullback that allows the market to stabilize before climbing higher again. Specifically, HBAR experienced a nearly 50% rally between February 6 and February 14. Following that surge, the price saw a correction of about 9%. Importantly, this decline has remained within the bounds of the flag structure, critical for preserving the bullish scenario. Instead of breaking lower, the price has stabilized, currently trading close to $0.101, near the upper limit of the flag pattern. This price level serves as a potential trigger for a breakout, indicating that a move above this zone could mark the beginning of the next rally.
However, relying on price patterns alone is insufficient for confirming a breakout; momentum and investor behavior must also align with the price action. Momentum indicators suggest that selling pressure has decreased throughout the pullback. The Relative Strength Index (RSI), a key momentum gauge, has formed a bullish divergence. While the price made lower lows between January 25 and February 15, indicating a downturn, the RSI created higher lows during that same period. This development signifies a loss of strength among sellers and suggests that buyers have begun to regain control. A strong buyer presence was confirmed when HBAR touched the $0.098 support level.
Further supporting this trend, exchange flow data shows a significant outflow of HBAR from exchanges, suggesting accumulation among investors. On February 15, the cryptocurrency recorded $2.49 million in net outflows, marking its highest exit in over a week as the price stabilized around $0.098. Such movements often indicate that investors are purchasing the dip rather than preparing to sell, which contributes to price stabilization and maintains the breakout structure.
Additional indicators signify that buyer support remains robust. The Bull Bear Power indicator, which assesses market dominance between buyers and sellers, remained positive during the pullback, confirming that buyers maintained control throughout the correction. Moreover, the Smart Money Index, which reflects the activities of experienced investors, remains above its signal line, indicating sustained engagement from larger investors.
With the pivotal breakout level now established at $0.101, a strong break above this threshold could activate the bull flag pattern, propelling HBAR’s price toward a target of $0.150, representing a potential 50% increase. Key resistance levels en route to the target sit at $0.120 and $0.133.
Despite the positive signals, there are still risks present. Should HBAR’s price drop below $0.086, the bullish flag pattern would be invalidated, canceling the breakout scenario. For the time being, Hedera’s recent pullback appears to be a consolidation phase rather than a reversal, with the price structure, momentum signals, and investor behavior all suggesting that a breakout attempt remains in play. The upcoming movement above resistance will be crucial in determining whether HBAR can realize its rally potential.
