Recent price dynamics of Hedera (HBAR) show an upward trend, but the lack of strong bullish signals in the broader market is holding back a significant rally.
Let's explore what is happening in the Hedera (HBAR) market and what to expect from the cryptocurrency's price.
A bullish shift has been recorded in the HBAR market
The recent formation of a 'golden cross' is a signal of a possible transition to a strong bullish momentum. This pattern emerged after a month under the 'death cross,' which did not trigger a significant downturn.
This shift in momentum has occurred against a backdrop of improving market sentiment towards HBAR. The 'golden cross' suggests that buyers are ready to regain control. This would lead to a significant price increase.
Golden cross on the HBAR chart. Source: TradingView
The increase in open interest is another important factor fueling growing optimism regarding HBAR. The metric has risen by 55% over the past week, from $219 million to $340 million. This growth highlights the increasing optimism among HBAR traders.
The positive funding rate enhances the optimistic outlook, as long contracts dominate the market. This indicates that traders expect price increases. An increase in open interest usually points to the attraction of new participants, which could contribute to further price growth.
Open interest in the HBAR token. Source: Coinglass
HBAR Forecast: How high will the price go
At the time of writing this analysis, HBAR is trading at $0.213, slightly below the resistance level of $0.222. The recent price increase of the token suggests that this barrier may be overcome; if so, the upward trend will continue.
If HBAR breaks above the $0.222 level and holds, it could open the way for growth to $0.250. Such success would reinforce the positions established over the past month and could attract more investors, potentially leading to new price targets in the near future.
HBAR Price Analysis. Source: TradingView
If HBAR fails to break through the resistance at $0.222, it risks remaining in a consolidation phase. If the price drops below the support level of $0.200, it could change the optimistic sentiment and lead to a decline to $0.182, which would negate the recent positive forecast.