Hedera (HBAR) has shown a notable increase of approximately 1% over the past 24 hours, a trend that has contributed to a recovery gaining traction in recent days. Over the last week, HBAR’s price has surged by 11.3%, indicating a renewed interest from buyers. Despite negative performance in the monthly and quarterly metrics, recent price movements suggest a bullish sentiment might be forming, hinting at a potential breakout.
Analysis of HBAR’s price patterns reveals the establishment of a bullish flag-and-pole configuration on the 12-hour chart. This pattern typically follows a significant upward movement, characterized by a pole, and is succeeded by a controlled pullback that enhances market stability before a subsequent rise. Between February 6 and February 14, HBAR made a remarkable climb of nearly 50%. This was followed by a 9% correction, which remained within the flag structure—a critical factor in supporting the bullish outlook. Currently trading around $0.101, HBAR is approaching the upper boundary of the flag, which acts as a key breakout trigger.
For a breakout to be confirmed, the price needs to move above this threshold. However, mere price patterns do not suffice; the backing of momentum indicators and investor behavior is essential. Momentum indicators illustrate a weakening of selling pressure during the recent pullback. Notably, the Relative Strength Index (RSI) reveals a bullish divergence. As the price dropped to lower levels between January 25 and February 15, the RSI painted a different picture by registering higher lows, indicating a loss of strength among sellers and a gradual gain in buyer influence.
The recent trading activity supports this optimistic trend. On February 15, HBAR reported $2.49 million in exchange outflows—the highest in over a week—coinciding with price stabilization around $0.098. This suggests that investors are opting to buy the dip and retain their assets in private wallets, rather than selling off. The accumulating trend is corroborated by the Bull Bear Power indicator, which confirms buyer dominance even during pullbacks. Similarly, the Smart Money Index remains above its signal line, reflecting continued engagement from larger, experienced investors.
The crucial breakout point now lies at $0.101. A decisive upward movement past this level could activate the bull flag pattern and propel HBAR toward a potential 50% increase, targeting resistance levels at $0.120 and $0.133. However, the conditions for this bullish scenario come with a caveat; should the price fall below $0.086, the bullish setup would be jeopardized.
In summary, while HBAR’s recent pullback could represent a phase of consolidation rather than a definitive reversal, the interplay of price structure, momentum indicators, and investor activity indicates a bullish breakout attempt is in play. The forthcoming price movements will be crucial in determining whether HBAR can meet its ambitious rally target.
