Roughly two months ago, we explored HBAR’s price action which was in the process of forming a cup and handle pattern. Fast forward to the present and that pattern has become more defined and seems to have reached its mid-point.
Investors holding Hedera’s native cryptocurrency HBAR might be feeling left out or disappointed by its performance especially in the last two months.
Many top cryptocurrencies achieved significant upside especially in the second half of July, but HBAR only managed a 38% rally from its 2022 lows.
Despite its uninspiring performance, zooming out on HBAR’s price chart reveals that there is still hope for HBAR investors.
The price is currently assuming a bullish curve pattern consistent with the cup and handle pattern.
This means the price may have bottomed out and is currently on the second half of the cup pattern.
Expecting the unexpected
The curvature in the cup and handle pattern suggests that HBAR’s price is now in the second half of the pattern. This means that a potentially parabolic move might be on the way.
However, this expectation is based on the assumption that market is in the recovery phase after the crash in the first half of 2022.
There is still a substantial risk of more downside especially if economic and regulatory factors weigh unfavorably on the crypto market.
On the other hand, healthy development goals will likely support its recovery. For example, HBAR recently crossed the one million accounts milestone on its mainnet.
Last week, we hit a huge milestone in the @hedera community – 1 million accounts on the main net since going open access! No better time to be on the #Hedera #ℏashgraph than now. ⚡️ Check out Hedera’s community numbers on DragonGlass ~ https://t.co/INyeSWQ4uv pic.twitter.com/mVZJDxsLZx
— DragonGlass (@dragonglassme) August 1, 2022
On top of that, HBAR continues to register healthy growth and utility within its network. Its developer activity metric registered a strong uptick in July.
NFT trades dropped significantly in the second half of July, but still maintained healthy levels.
Some of the recent development activity includes Hedera’s integration with DLT networks.
This move was aimed at boosting the transparency and visibility of HBAR dapps within the WEB3 space. It also confirms Hedera’s commitment towards being a more competitive smart contract network.
We're excited to announce that @metrikaco, the leader in operational intelligence for DLT networks, has integrated @Hedera to enable enhanced visibility & transparency for #HBAR dApps across the ecosystem – creating a best-in-class experience for #Web3 application developers ⚡️ pic.twitter.com/0RW29SZmol
— The HBAR Foundation (Accelerating Hedera) (@HBAR_foundation) August 3, 2022
Hedera continues to aggressively seek out more growth opportunities in WEB3 despite HBAR’s bearish performance in the last few months.
The next few months look promising as far as recovery is concerned. However, this does not necessarily rule out unexpected bearish moves in the market, hence the need to proceed cautiously.