HBAR price has formed at least two highly bullish patterns, pointing to an eventual rebound despite deteriorating metrics in the decentralized finance industry.
Summary
- HBAR price has formed numerous chart patterns, pointing to more gains in the near term.
- It has formed a falling wedge pattern and is in the second phase of the Elliot Wave.
- The main risk is that the network growth is deteriorating.
Hedera (HBAR) was trading at $0.2286 on Monday, up from this month’s low of $0.2060. It remains about 25% below the year-to-date high of $0.3045.
HBAR price technical analysis
The daily timeframe chart shows that the Hedera price has formed several highly bullish patterns that may lead to a strong breakout. It formed a double-bottom pattern at $0.1230, with a neckline at $0.2277.
HBAR has then formed a falling wedge pattern, which is made up of two falling and converging trendlines. This wedge is part of a broader bullish pennant pattern.
It is also part of the second phase of the impulse Elliott Wave, which is then followed by the third one, usually the longest and most bullish.
HBAR has also settled above the 200-day Exponential Moving Average, a sign that bulls are in control. Therefore, these patterns point to more gains, with the initial target being the year-to-date high of $0.3045, which is about 35% above the current level.
A move above that target will point to more gains, potentially to the January high of $0.4018. This target is about 76% above the current level. A move below the support at $0.2061 will invalidate the bullish HBAR price forecast.
Hedera metrics are deteriorating
While HBAR price has strong technicals, its fundamentals are deteriorating. For example, data compiled by DeFi Llama shows the volume in its DEX protocols has been in a downward trend in the past few weeks.
This volume peaked at $1.7 billion in December last year and then fell to a low of $242 million in September. Falling DEX volume is a sign that activity in the network is not improving.
Other data show that the total value locked in its decentralized finance ecosystem has pulled back in the past few days, moving from a high of $250 million in July to $230 million today. Its TVL is much lower than that of other smaller networks such as Plasma, Unichain, Linea, and Katana.
Meanwhile, the amount of stablecoins on the Hedera network has seen substantial fluctuations in the past few months. It has dropped to $81 million from this month’s high of $164 million. A similar move occurred in September when it dropped from $150 million to $70 million within a day.
