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Hedera Hashgraph (HBAR) Shows Strength After Bouncing From $0.22 Level

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Written by
Valdrin Tahiri

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Edited by
Kyle Baird

16 December 2021 15:00 UTC
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  • HBAR is increasing alongside a long-term ascending support line
  • There is horizontal support at $0.23.
  • HBAR is in the process of breaking out from a short-term descending resistance line.
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Hedera Hashgraph (HBAR) has been moving upwards over the past three days and is showing strong signs that it has already made a bottom.

The weekly chart for HBAR provides a relatively neutral outlook. 

On the bearish side, the token fell below the $0.435 area, after previously moving above it on Sept 13-17. The entire portion of the upward movement that led to the all-time high is now just a long upper wick, which is considered a sign of selling pressure. 

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On the bullish side, HBAR has bounced at a long-term ascending support line that has been in place since February. This is the fifth validation of the line as support. 

Technical indicators provide a neutral outlook. 

The MACD, which is created by short and long-term moving averages (MA), is decreasing but is not yet negative. This means that while the short-term MA is decelerating when compared to the long-term average, it\s still faster. 

The RSI, which is a momentum indicator, is right at the 50-line. This is a sign of a neutral trend.

Ongoing bounce

The daily chart provides a more bullish outlook. HBAR has bounced at the $0.23 horizontal support area, which is also the 0.786 Fib retracement support level. Since it coincides with the previously outlined ascending support line, it further increases its significance. 

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In addition to this, technical indicators are gradually turning bullish. 

While the MACD is still negative, it has created successive higher momentum bars. This means that the short-term MA has begun to accelerate. It often occurs during the beginning of upward movements. 

Also, the RSI has bounced and is in the process of moving towards the 50-line.

Furthermore, it is interesting to note that the downward movement of September and that of November have an almost 1:1 ratio. Therefore, it is possible that the entire downward movement since Sept is an A-B-C corrective structure since this is the most common ratio in such structures.

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A movement above the A wave low (red line) at $0.296 would confirm this.

If correct, it would mean that HBAR has completed its correction and will now continue moving higher.

Short-term HBAR movement

Cryptocurrency trader @Crediblecrypto outlined an HBAR chart, stating that the token is likely to increase towards the $0.30 area in the short term.

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The main short-term resistance area is indeed at $0.31. This is both a horizontal resistance area and the 0.382 Fib retracement resistance level.

Currently, HBAR is in the process of breaking out from a short-term descending resistance line. If successful, it would likely increase at least to the $0.31 area, and potentially higher.

A breakout above the $0.31 area would be a very bullish development that would go a long way in confirming that HBAR has bottomed.

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