Is A New Rally Ahead For Hedera?

Hedera

Key Insights

  • Hedera has been bullish this week, with an ongoing price increase of 25% between Thursday and Friday.
  • The cryptocurrency is bearish on the daily timeframe, but is showing signs of a comeback.
  • Hedera is expected to consolidate between the $0.35 price level and $0.4 before making another move.
  • A break below $0.3 could invalidate the bullish outlook and cause a crash towards $0.25.
  • Coincodex predictions show a possible push towards the $0.45 price level by February.

Hedera has been on a bullish roll lately, and is garnering a lot of investor interest after rising by a monumental 25% over the past week.

The cryptocurrency has also become popular during the week with its promising technical indicators and developments in its ecosystem.

Here are all the updates about Hedera’s performance and what to expect from its price action in the future.

Recent Price Movement

Hedera has declined somewhat over the last 24 hours, and is trading at a -5% price movement within this timeframe.

However, this came after the cryptocurrency surged by around 10% on Friday and peaked at around $0.4.

Hedera’s price retracement
Source: CoinMarketCap

According to data from CoinMarketCap, the cryptocurrency has retraced its steps to the $0.35 price level over the past 24 hours.

Interestingly during the week, the cryptocurrency’s trading volume peaked at around 88.7% to reach $2.66 billion. 

This showed a great deal of investor interest, and a possible break above the psychological $0.4 price level soon.

On the broader timeframe, Hedera failed to break above this $0.4 price level on December 3, and crashed lower to stabilize between $0.23 and $0.25. 

This consolidation has helped the cryptocurrency to regain ground, and the charts might show us what comes next for Hedera.

Market Activity and On-Chain Metrics

Hedera’s trading activity at the moment, shows that the buyers and sellers are both participating equally.

Coinglass data shows that over $7.65 million worth of HBAR trades were liquidated on Friday after it failed to break above this $0.4 price level.

The ongoing Hedera liquidations
Source: Coinglass

Notably, the bulls suffered the worst of it after losing $3.72 million of the total.

Another interesting thing that came up this week for Hedera is its increase In Open Interest, even despite its inability to break above $0.4.

An increase in open interest
Source: Coinglass

This figure has so far peaked at an impressive $517 million, and indicates that Hedera is currently experiencing strong demand.

Coinglass’ long/short ratio also stands at 1.8161 for Hedera, meaning that traders are looking to buy the dip at specific support levels.

Technical Analysis

According to the charts, HBAR’s price rose from $0.25 to over $0.4 through the week, in an almost parabolic rally via the daily chart.

AT the time of writing, Hedera currently trades at $0.35, after losing the $0.376 support on Friday.

Meanwhile, the RSI currently sits at the 61/100 level, which indicates that the bulls are still in control.

Technical analysis for HBAR
Source: TradingView

Judging by the Fibonacci extension pictured above, if the cryptocurrency keeps from groing below the $0.31 price level, it could rebound towards $0.4 once again.

This said, a break above $0.4 could spark a further rally to the $0.45 zone.

On the flip side, a break below the $0.31 zone could lead the cryptocurrency further down to the $0.25 price level.

Hedera’s open interest increase from $290.77 million to $550.88 million in just a few days shows a record high since its launch, and could be a sign of a bullish comeback.

 Hedera’s price is expected to consolidate between the $0.35 and $0.4 price level in the short term, as investors expect a push towards the 50-cent mark or higher.

Price prediction for Hedera
Source: Coincodex 

According to Coincodex, Hedera’s price prediction shows a possible rise by 21.47% to $0.468 by February.