The native token of Hedera Hashgraph, HBAR, has shown discreet price performance since the beginning of August, mainly trading within a narrow range.
However, with the improvement in market momentum, HBAR has surpassed the upper line of the channel, and on-chain data confirms the likelihood of remaining above the price barrier in the short term.
HBAR seeks breakout amid increased capital and activity
Daily chart readings HBAR/USD show that the altcoin has been trading within a horizontal channel since the beginning of August.
This pattern arises when the price of an asset oscillates between a defined resistance and support level, indicating consolidation. Since August 1st, HBAR has encountered resistance at $0.2669, while support has remained at $0.2357.
Horizontal Channel HBAR. Source: TradingView
In the last 24 hours, HBAR has risen by 3% and is currently above this resistance. On-chain indicators suggest that as buying pressure increases, this level could solidify as a new support floor, potentially paving the way for further gains.
First, according to DefiLlama, the market capitalization of Hedera's stablecoins has increased by over 54% in the last seven days, reaching $86.41 million.
Market Capitalization of Hedera's Stablecoins. Source: DefiLlama
An increase in the market capitalization of stablecoins signals strong capital inflows into the network, suggesting greater investor confidence and liquidity. This could push HBAR upward as demand for the token grows along with ecosystem activity.
Furthermore, Hedera Hashgraph has seen an increase in total value locked (TVL) in DeFi. According to DefiLlama, it is currently at $140.06 million, a 20% increase since August 3rd.
TVL of Hedera. Source: DefiLlama
TVL measures the amount of crypto assets staked or locked within a network's protocols and is seen as an indicator of activity and network usage. Thus, the growth of TVL indicates that more users are interacting with applications based on Hedera, which may increase short-term demand for HBAR and strengthen its price performance.
Could $0.2664 become a new support floor?
The recent increase in the market capitalization of stablecoins and the growth of the network's TVL suggest that resistance at $0.2669 may solidify as a new support floor.
If buying pressure continues to increase, HBAR could extend its gains towards $0.3050 in the short term if this happens.
HBAR Price Analysis. Source: TradingView
However, a drop below $0.2669 could trigger a pullback towards $0.2357. HBAR could face a sharper decline if this level does not hold, potentially testing $0.1963.
The article HBAR Rally Gains Strength with Increased Stablecoin Inflows and TVL Up 20% was first seen on BeInCrypto Brazil.
