Hedera (HBAR) has formed a bull flag formation on its last three-day chart and has the potential to recover from a 10% decline. On-chain data shows that investors are taking more long positions, reinforcing the bullish sentiment around the token. Momentum is increasing on the weekly timeframe, and analysis suggests that HBAR could see a significant rally towards $0.40 in the short term.
Despite a 10% decline in the last 24 hours, HBAR seems to be able to recover this loss. This is supported by the bull flag formation on HBAR’s chart, indicating that the decline could continue to $0.29. This technical pattern occurs when a strong upward movement is followed by a short-term price pause or correction, and is usually interpreted as a sign that the trend will continue.
If the bull flag is confirmed, HBAR is expected to see a significant increase towards $0.40. Another factor supporting this positive price movement is traders’ expectations that HBAR will increase in value. Funding rates also confirm this expectation; this rate represents the cost of holding a position and when positive, it indicates increasing buying pressure from market trends.
According to Santiment’s data, HBAR’s funding rate is in the positive territory at 0.01%. This indicates that open long positions are in the majority and could push HBAR’s price higher in the short term. Also, the Moving Average Convergence Divergence (MACD) indicator on the HBAR/USD weekly chart remains in the positive territory, indicating that the momentum is bullish and the price could continue to rise.
If HBAR can continue its current trend, it is possible for its price to rise to $0.40. If buying pressure increases, it is also possible for HBAR to jump to $1. However, if the bull flag is invalidated, this rise may not happen and the price may fall to $0.17.