Hedera Hashgraph (HBAR) is in the process of making a short-term breakout attempt above both a horizontal and diagonal level.
The weekly chart shows that HBAR has reclaimed the $0.365 area after firstly deviating below it (red circle). This is a bullish development that often leads to upward movements.
Furthermore, if the current price holds until the end of the week, it would be the highest ever weekly close. It remains to be seen if the price will hold the current level.
Potential breakout
HBAR has been moving upwards since Sept 21. The upward movement has been contained inside an ascending parallel channel. Usually, such channels contain corrective movements. This would mean that the trend is downward, and the upward movement is only a correction.
However, HBAR is in the upper portion of the channel and is currently making its fourth breakout attempt. While the previous three (red icons) were unsuccessful, resistance lines get weaker each time they are touched. Therefore, it is possible that HBAR will break out on this try.
In addition to this, the token is in the process of moving above the $0.43 horizontal resistance area. If it is successful in doing so, it would also be expected to break out above the channel.
Technical indicators are relatively bullish. The MACD, which is created by a short- and a long-term moving average (MA), is moving upwards and is positive. This means that the short-term trend is faster than the long-term one.
The RSI, which is a momentum indicator, is above 50. This is a sign of bullish momentum.
Therefore, technical indicators suggest that a breakout is likely.
Cryptocurrency trader @CrediblyCrypto outlined an HBAR chart, stating that the token is making yet another attempt at moving above the $0.43 horizontal resistance area. He believes that it will be successful in breaking out. This is in agreement with the readings from the daily time-frame.
HBAR wave count
The wave count shows that HBAR is in the fifth wave (orange) of a long-term upward movement that began in 2020. This is the final wave prior to a long-term correction.
Furthermore, the token has already reached a high inside a target given by the 1.61 external Fib retracement level (black) and 1:1 Fib projection of waves 1-3 (orange).
So, despite the possibility of a breakout in the short-term, the long-term chart shows that the upside for HBAR is limited, since the first potential target for the top has already been reached.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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