Hedera Hashgraph (HBAR) Price Destined for Brief Drop After 120% Gains

25 January 2023, 17:30 GMT+0000
Updated by Geraint Price
25 January 2023, 17:30 GMT+0000
In Brief
  • HBAR broke out from a 154 day resistance line.
  • It is trading above support at $0.06.
  • HBAR has completed a five-wave upward movement.
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The Hedera Hashgraph (HBAR) price has completed a five-wave upward movement and is likely mired in a corrective structure.

The HBAR price has increased at an accelerated rate since the beginning of the year. In a span of 20 days, it moved upward by 125%, reaching a high of $0.081 on Jan. 20.

The price broke out from a 154-day resistance line during the upward movement. Then it moved above both the 0.5 and 0.6 Fib retracement resistance levels at $0.060 and $0.066, respectively. This suggests that the upward movement is not corrective, but rather it is the beginning of a bullish trend reversal.

Since the 0.5 Fib retracement level at $0.060 also coincides with a horizontal support area, it is now expected to provide support.

Hedera Hashgraph (HBAR) Daily Chart
HBAR/USDT Daily Chart. Source: TradingView

HBAR Price Prediction for Feb: Wave Count Predicts Correction

The technical analysis from the short-term six-hour time frame shows that the HBAR price completed a five-wave upward movement. Therefore, it gives a bearish HBAR price prediction for Feb.

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In it, wave five had 1.61 times the length of wave three. Therefore, it is very likely that the entire upward movement is complete. 

If so, what follows is an A-B-C corrective structure, which could end near the 0.5-0.618 Fib retracement support area (white) at $0.053-$0.058.

Conversely, an increase above the $0.081 high would invalidate this bearish analysis. In that case, the HBAR price would still be in a bullish upward movement and could increase to $0.110. 

Hedera Hashgraph (HBAR) Wave Count
HBAR/USDT Six-Hour Chart. Source: TradingView

To conclude, the most likely HBAR price analysis suggests that the price will complete its correction between $0.058-$0.052. Afterward, the continuation of the upward movement is expected.

However, in case the HBAR price increases above $0.081, it would mean that the trend is still bearish. Highs near $0.110 would be expected in that case.

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