Despite a 10% drop in the last 24 hours, Hedera (HBAR) price has the potential to reverse this loss. This is due to the formation of a bullish flag pattern, suggesting that the drop to $0.29 may not last.
In addition to the technical pattern, other factors also indicate that a significant rally may be underway.
Hedera seeks breakout as traders bet on recovery
On Christmas Day, HBAR was priced at $0.32, but at the time of writing, the altcoin’s value has dropped to $0.29. This drop can be attributed to increased selling pressure and a lack of notable buying pressure in the market.
However, the coin’s price action over the 3-day timeframe shows bullish flag formation. The pattern resembles a flag on a flagpole and is considered bullish. It usually forms after a strong upward move, followed by a brief consolidation or pullback.
When validated, this pattern is seen as a continuation of the uptrend. With the formation of the HBAR bull flag, the altcoin’s price is likely to experience a significant rally towards $0.40.
Hedera 3-day analysis. Source: TradingView
It also appears that traders are expecting the cryptocurrency’s value to rise, as indicated by the funding rate. The funding rate represents the cost of holding an open position in a perpetual contract.
When the rate is positive, the perpetual price trades at a premium (above) the spot price, and open long positions pay a financing fee while open short positions receive it. Conversely, when it is negative, the perpetual price trades at a discount (below) the index price.
According to Santiment Hedera, its funding rate is in the positive region at 0.01%. If maintained, dominant open long positions could drive HBAR price higher in the short term.
Hedera Financing Tax. Source: Santiment
HBAR Price Prediction: Move to $0.40 Likely
According to the HBAR/USD weekly chart, the Moving Average Convergence Divergence (MACD) is in positive territory. The MACD is a technical indicator that measures momentum using the relationship between the 12-period and 26-period Exponential Moving Average (EMA).
When the reading is positive, the momentum is bullish. However, a negative MACD reading indicates that the momentum is bearish. Thus, the current reading of the indicator suggests that the price of HBAR may rise in the near term.
If the altcoin continues its trend, the token’s value could rise to $0.40, as mentioned earlier. If buying pressure increases, it could surge towards the $1 mark.
Hedera Weekly Analysis. Source: TradingView
However, if they invalidate the HBAR bull flag, this may not happen. Instead, the cryptocurrency’s price may drop to $0.17.
The article HBAR’s bullish flag seeks to erase losses; understand was first seen on BeInCrypto Brazil.
