• Hedera [HBAR] posted an impressive rally over the past seven days, trading at $0.0399.
• A patterned breakout to the upside could target $0.0426, but there is a risk of a price reversal if RSI is rejected around the midpoint.
• If trading volumes increase, a break below $0.0387 could give the bears more leverage.
Hedera [HBAR] has been on a roll over the last seven days, rising from $0.0365 to $0.0400, up about 10%. At press time, it was trading at $0.0399 and seemed eager to break above $0.0400. The crossing could happen if BTC rises above $16,945. However, BTC is currently facing rejection at this level and it is uncertain whether HBAR will be able to make a move.
The technical indicators on the 12-hour chart suggest that a patterned breakout is possible. The Relative Strength Index (RSI) has risen from oversold territory and is currently slightly above the midpoint of 50 units. On the other hand, the On-Balance Volume (OBV) has recorded higher lows since the beginning of the year, indicating increasing buying pressure and trading volume. If trading volumes increase, the bulls could bring about a patterned breakout with a target of $0.0426.
However, there is still a risk of a price reversal. If the RSI is rejected around the midpoint, HBAR could pull back. In the past, a few rejections around the midpoint have caused a price reversal, and a similar trend could occur again. Moreover, a declining BTC could accelerate the price reversal. Such a downside move could force HBAR to retest or break support at $0.0387, invalidating the bullish bias. Furthermore, HBAR has formed a bearish flag pattern which could target $0.0344 on an extreme downside breakou.
In conclusion, HBAR has been showing strong bullish signals over the last seven days and a patterned breakout could target $0.0426. On the other hand, a break below $0.0387 could give the bears more leverage.