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Despite experiencing a 10% pullback in the last 24 hours, the Hedera ($HBAR) price has the potential to erase this loss. This assertion is because of the $HBAR bull flag formation, which suggests that the decline to $0.29 may not last.
Besides the technical pattern, other factors also indicate that a significant rally could be in the works.
Hedera Eyes Breakout as Traders Bet on Recovery
On Christmas Day, $HBAR’s price was $0.32, but at the time of writing, the altcoin’s value has tanked to $0.29. This decline could be attributed to rising selling pressure and the lack of notable buying pressure in the market.
However, $HBAR’s price action on the 3-day timeframe shows that it has formed a bull flag. The bull flag pattern resembles a flag on a pole and is considered a bullish pattern. It typically forms after a strong upward price movement, followed by a brief consolidation or pullback.
When validated, this pattern is viewed as a continuation of the uptrend. With the $HBAR bull flag formation, the altcoin’s price is likely to experience a significant rally toward $0.40.
It also appears that traders are expecting the cryptocurrency’s value to rise, as indicated by the funding rate. The funding rate represents the cost of holding an open position in a perpetual contract.
When the funding rate is positive, the perpetual price trades at a premium (above) the spot price, and open long positions pay a funding fee while open short positions receive it. Conversely, when the funding rate is negative, the perpetual price trades at a discount (below) to the index price.
According to Santiment Hedera, its funding rate is in the positive region at 0.01%. If sustained, the dominant open long positions could fuel $HBAR’s price to move higher in the short term.
$HBAR Price Prediction: Move to $0.40 Likely
According to the weekly $HBAR/USD chart, the Moving Average Convergence Divergence (MACD) is in positive territory. The MACD is a technical indicator that measures momentum by using the relationship between the 12 and 26-period Exponential Moving Average (EMA).
When the reading is positive, momentum is bullish. However, a negative MACD rating indicates that momentum is bearish. Thus, the current reading of the indicator suggests that $HBAR’s price could climb higher in the short term.
Should the altcoin sustain the trend, the token’s value could rise to $0.40, as mentioned earlier. If buying pressure increases, it could jump toward the $1 mark.
However, if the $HBAR bull flag is invalidated, this might not happen. Instead, the cryptocurrency’s price might slide to $0.17.
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