Hedera Hashgraph has managed to become one of the top blockchains judging by its $3.9 billion market cap. It continues to gain popularity and utility but its native cryptocurrency HBAR has been on a sharp decline ever since it peaked in November 2021.
HBAR traded at $0.20 at the time of this press, a modest gain from $0.18, the lowest price level that it has registered so far, since its 2021 peak. It has so far tanked by roughly 58% from its $0.47 ATH, which means it is currently at a healthy discount. Its current price action suggests that it might be due for another major rally.
Source: TradingView
HBAR’s latest pullback wiped out its March gains
HBAR’s mid-March rally commenced from the $0.20 price level before encountering resistance near the $0.25 price zone at the end of the month. It has since then shed those gains in the last 2 weeks and sought some more downside. This performance reveals that the price has been restricted within a support and resistance zone.
The cryptocurrency’s MFI indicator reveals some accumulation after briefly touching its 0.20 level, resulting in a slight uptick in the last two days. Despite this, the RSI reveals that the price is not yet oversold, but the DMI does point towards weak bearish momentum.
Making a case for another bull run
The 2-week retracement has pulled the price closer to its structural support near the $0.18 price zone. It is more likely to experience more buying volume than selling volume at that level.
A topside push also means the next Fibonacci retracement zone will be at the $0.25 price level. This means the price will rally by at least 28% from its current level before facing the next resistance zone.
The bullish expectations might be supported by an uptick in supply held by whales since 11 April. Its market cap also grew slightly, while developer activity highlights strong and increased activity.
Source: Santiment
