Hedera Hashgraph price formed a double-top chart pattern, pointing to an eventual pullback as the recent rally lost momentum. The HBAR token retreated to $0.3200 on Thursday morning, down by about 20% from its highest level this year. So, is the HBAR token a good coin to buy or is it about to plunge?
Hedera Hashgraph price analysis
The daily chart shows that the HBAR price bottomed at $0.0410 in November last year after remaining in a consolidation phase for months.
This bullish breakout happened after Canary filed for a spot HBAR ETF with the Securities and Exchange Commission (SEC).
It also happened as other popular altcoins like Ripple and Stellar Lumens went parabolic amd spot ETF approval hopes.
HBAR token has moved above all moving averages and the Ichimoku cloud, a sign that bulls are in control for now.
However, there are signs that the coin has formed a double-top chart pattern at $0.3927. This is a common chart pattern that is characterized by twin peaks and a neckline, which in this case, is at $0.2345, its lowest swing on December 30.
The Relative Strength Index (RSI) and the MACD indicators have all pointed downwards, a sign that it has lost the momentum. Therefore, from a technical perspective, it is likely to suffer a strong reversal, potentially to the neckline at $0.2345, down by 26% from its current level. This bearish view will remain if the HBAR price is below the double-top point at $0.3927.
On the positive side, Hedera Hashgraph may be forming a falling wedge chart pattern, which may stage a strong bullish breakout. It is also forming a bullish flag chart pattern on the weekly chart.
This pattern is made up of a vertical line or the flag pole and a consolidation. The consolidation has been happening since November last year. Therefore, a break above the upper side of the flag at $0.4020 will point to more gains, potentially to the all-time high of $0.5833, up by 82% from the current level.
Potential catalysts for the HBAR price
Hedera Hashgraph price has numerous possible catalysts that may push its price higher in the long term.
First, there are rising odds that the Securities and Exchange Commission (SEC) will approve a spot Hedera ETF this year. Such a fund is possible because of the ongoing even under Gary Gensler, the agency did not claim that Hedera was a security. An ETF approval would likely lead to some demand from institutional investors and possible hype.
We wrote “some” demand since evidence shows that institutional investors are only interested in Bitcoin. Spot Bitcoin ETFs have attracted over $38 billion in assets, while Ethereum ones only have less than $3 billion in inflows.
Second, Hedera Hashgraph could start attracting more developers, a move that will transform it to a Solana-like network. More developers in its ecosystem would be important because its ecosystem is relatively small for a network with a market cap of over $10 billion. It only has 13 dApps in the DeFi industry, including Stader, SaucerSwap, and Bonzo Finance.
Third, like other crypto coins, Hedera Hashgraph price may benefit from the friendly policies by the Donald Trump administration. Analysts expect that some of his policies will lead to more gains in the longer term.
Read more: HBAR price forecast: here’s why Hedera Hashgraph will hit $1
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