HBAR Consolidates After Breakout

Share Article
In Brief
  • HBAR has broken out from a descending parallel channel.

  • There is resistance at $0.27 and $0.34.

  • HBAR is trading inside a short-term ascending parallel channel.

  • promo

    Join the BIGGEST ICO ever launched in Spain: Buy B2M now.

The Trust Project is an international consortium of news organizations building standards of transparency.

Hedera Hashgraph (HBAR) managed to break out from a long-term descending parallel channel on Aug. 14. However, it has failed to initiate a significant upward movement since the breakout.

Sponsored



Sponsored

Despite the long-term trend being bullish, there is weakness developing in the lower time-frame, a sign that the token could initially drop before moving upwards.

HBAR breaks out

HBAR had been decreasing alongside a descending parallel channel since March 25. The decrease continued until a low of $0.138 was reached on June 22. The token has been moving upwards since.

Sponsored



Sponsored

On Aug. 14, it purportedly broke out from the channel. However, it failed to sustain the upward movement and was rejected by the $0.27 resistance area instead. It made another breakout attempt on Aug. 24, which was also unsuccessful and created a long upper wick.

Furthermore, both the MACD and RSI have generated bearish divergences. Therefore, it is likely that the token will decrease initially before potentially making another breakout attempt.

Chart By TradingView

Future movement

The shorter-term six-hour chart shows that HBAR has been trading inside an ascending parallel channel since July 20. Such structures usually contain corrective movements.

Furthermore, there is bearish divergence in place in both the RSI and MACD, similar to the daily time-frame.

If a breakdown occurs, the main resistance area would be at $0.205.

Chart By TradingView

Wave count

Cryptocurrency trader @24KCrypto outlined an HBAR chart, stating that the price is in a long-term bullish structure that could eventually take it to a new all-time high near $3.

Source: Twitter

It does look likely that HBAR is in wave four of a bullish impulse, that began on Jan. 2020. There is sufficient alternation in both time and length between waves two and four.

If the count proves to be correct, the initial targets for the top of the movement would be between $0.604-$0.644. This is the 1.61 external Fib retracement (black) and the length of waves 1-3 (orange), projected to the bottom of wave four.

Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

Market signals, studies and analysis! Join our Telegram Today!

Go