Hedera (HBAR) is once again approaching the important resistance level at $0.26 — a price point that triggered a drop of more than 50% earlier this year.
As of now, HBAR is trading around $0.237, recording a slight increase of 1.6% in the past 24 hours, according to data from CoinMarketCap.
Previously, this altcoin attempted to breach the $0.26 barrier but failed. The question now is: will this return open up a spectacular breakout, or is it just a stepping stone for a deeper correction?
Positive on-chain signals reinforce bullish expectations
Despite concerns about the possibility of a correction, market sentiment is currently leaning towards a bullish outlook, as many traders are aggressively betting on the uptrend.
According to data from CoinGlass as of July 16, up to 66.02% of traders on Binance are holding long positions with the HBAR/USDT pair. The Long/Short ratio currently stands at 1.94 – a figure that shows buying power is clearly dominant.
This development reflects increasing confidence among derivative investors, even as HBAR faces significant pressure from the resistance level ahead. However, if the bulls cannot break through and hold the $0.26 mark as a support level, this area could definitely become a trigger point for a strong selling wave from the opposing side.
Withdrawal from exchanges shows signs of accumulation
Not only among traders, but even long-term investors are clearly showing confidence in HBAR, as evidenced by the strong accumulation activity over the past 48 hours.
According to data from CoinGlass, over $4.48 million worth of HBAR has been withdrawn from exchanges during this period — a sign that capital is shifting from trading to holding.
Notably, this withdrawal activity occurs against the backdrop of a slight market correction, further reinforcing the high possibility that there is silent buying accumulation. If this trend continues, HBAR could receive enough momentum to break through the important resistance level ahead.
Technical analysis for the breakout signal
According to technical analysis from Bitcoin Magazine, HBAR is entering an accumulation phase just below the important resistance level at $0.26. This is a price range that previously triggered a strong correction, causing investors to be particularly cautious.
If the price can break through the $0.265 mark, the uptrend could be strongly reinforced, opening up potential to move towards the $0.37 region - equivalent to an increase of nearly 39.6% from the current level. Conversely, if it fails to break the resistance level, HBAR risks reversing down to the support area of $0.22, corresponding to a decline of about 13%.
Overall, the long-term trend still leans positively. HBAR's price remains above the 200-day exponential moving average (EMA) at $0.1808 – a signal that long-term buying pressure is still being maintained.
However, one noteworthy factor is that the relative strength index (RSI) has now reached 78 – falling into the overbought zone. This indicates that the market may be 'too hot', increasing the likelihood of a short-term correction before HBAR can establish a more sustainable uptrend.