• 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 a break below $0.0387 would give the bears more leverage.
• Technical indicators on the 12-hour chart suggest a possible patterned breakout, but BTC has to rise above $16,945 for it to happen.
Hedera [HBAR] has been on a bullish streak lately, with its price rising from $0.0365 to $0.0399 over the past seven days. The digital asset is currently trading at $0.0399, and it looks like it is preparing for a patterned breakout to the upside. Technical indicators on the 12-hour chart suggest that this could be possible, although BTC must rise above $16,945 for it to happen.
The Relative Strength Index (RSI) on the 12-hour chart is currently slightly above the midpoint of 50 units, which suggests that buying pressure is increasing. This is further supported by the On-Balance Volume (OBV) which has recorded higher lows since the beginning of the year. If trading volumes continue to increase, the bulls could bring about a patterned breakout with a target of $0.0426.
However, there are still some obstacles that need to be overcome before this can happen. If RSI is rejected around the midpoint, HBAR could pull back. This is because several rejections around the midpoint in the past have led to a price reversal, and a similar trend could cause HBAR to correct. Additionally, a declining BTC could accelerate the price reversal, forcing HBAR to retest or break support at $0.0387 and invalidating the bullish bias. Moreover, HBAR has formed a bearish flag pattern that could target $0.0344 on an extreme downside breakou.
Therefore, it is important to keep an eye on BTC’s movements as it will be a major factor in determining HBAR’s price movements. If BTC manages to rise above $16,945, a patterned breakout could be possible, and HBAR could target $0.0426. On the other hand, a break below $0.0387 would give the bears more leverage and could cause HBAR to decline.