Hedera Hashgraph (HBAR) has been trading in a clearly defined descending channel for several months, keeping the price under consistent pressure.

The downward channel is characterized by lower highs and lower lows, with the top line acting as a resistance and the bottom line acting as support. Traders have witnessed several instances of the price rising to the top line and falling back.

Currently, HBAR is trading around $0.095. The price had a brief decline to $0.08 around early February. The price is looking to consolidate.

The price is compressing to the upper part of its price channel. On March 14, analyst Butterfly wrote that bulls are pressing hard, and if it rises above resistance, it has a chance to surge.

Source: X

Also Read: Hedera (HBAR) Eyes Breakout as Analysts Set $0.105–$0.280 Targets

HBAR Bollinger Bands Signal Potential Breakout

The analysis by TradingView gives a number of reasons why a bullish move is likely to take place. The Bollinger Bands indicate a low volatility environment because HBAR is trading around the middle band at $0.095.

The upper band is around $0.103, while the lower band is around $0.091. This is a good indication that a larger move is likely to take place. If the price rises above $0.10 and the upper band, it is likely to be a sign of a recovery.

The momentum indicators are somewhat better. The MACD is slightly below zero, and its histogram bars are decreasing, which indicates that bearish momentum is slowing down. 

Source: TradingView

The RSI is at 47 and is rising from oversold territory, which indicates a balance between buyers and sellers.

The broad trends are set by the 20, 50, 100, and 200-day moving averages, and these are in favor of the sellers. The EMA 20 is at $0.096, EMA 50 at $0.100, EMA 100 at $0.112, and EMA 200 at $0.136.

This indicates that the long-term trends are in favor of the bears. Any breakout needs to occur on good volumes.

Breakout Could Trigger Rapid Upside

If HBAR rises above the falling channel with consecutive bullish candles and increased trading volume, it is likely to reach the next resistance range of $0.20 to $0.24. The short sellers associated with a descending channel tend to close their positions on a breakout.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.

Also Read: Hedera (HBAR) Forms WXY Pattern: Could it Trigger a Rally Above $0.107?