Hedera Hashgraph (HBAR) Develops Bullish Divergence Inside Descending Wedge

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Hed­era Hash­graph (HBAR) has been con­sol­i­dat­ing since Decem­ber and has begun to gen­er­ate bull­ish rever­sal signals.

Hed­era Hash­graph has been falling since reach­ing an all-time high price of $0.57 on Sept 16. On Nov 12, the price made anoth­er attempt at mov­ing upwards but was reject­ed by the $0.43 long-term resis­tance area. The down­ward move led to a low of $0.187 on Feb 24. Mea­sur­ing from the all-time high price, this amount­ed to a decrease of near­ly 64%. 

Tech­ni­cal indi­ca­tors are neu­tral, lean­ing on bearish. 

Both the RSI and MACD are falling. While the RSI is cur­rent­ly below 50, the MACD has yet to cross into neg­a­tive ter­ri­to­ry. If this occurs, it would be a strong sign that the trend is bearish.

Bullish HBAR pattern

Despite the bear­ish­ness from the week­ly time frame, the dai­ly chart looks more bull­ish, since HBAR has been trad­ing inside a descend­ing wedge since Dec 4. The descend­ing wedge is nor­mal­ly con­sid­ered a bull­ish pat­tern. There­fore, a break­out from the pat­tern would be the most like­ly scenario.

In addi­tion to this, both the MACD and RSI have gen­er­at­ed sig­nif­i­cant bull­ish diver­gences (green lines). Such occur­rences very often pre­cede bull­ish trend reversals.

If a break­out from the pat­tern tran­spires, the clos­est resis­tance area would be found at $0.33. This tar­get is both a hor­i­zon­tal resis­tance area and the 0.382 Fib retrace­ment resis­tance level.

Wave count analysis

Cryp­tocur­ren­cy trad­er @24kcrypto tweet­ed an HBAR chart, show­ing that the price is cor­rect­ing inside what is like­ly wave four.

It seems like­ly that the decrease from the all-time high price is an A‑B-C cor­rec­tive struc­ture (white) where waves A and C had an exact 1:1 ratio.

The sub-wave count is shown in black and we can see that wave C devel­oped into an end­ing diag­o­nal. Such for­ma­tions are usu­al­ly suc­ceed­ed by a sig­nif­i­cant and swift move­ment in the oth­er direction. 

There­fore, the wave count sup­ports the find­ings from the bull­ish diver­gences and indi­cates that HBAR break­ing out above the wedge is the most like­ly scenario.

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Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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