Hedera Hashgraph is enjoying a rally, fueled by a perfect storm of bullish technical patterns and on-chain recovery signs — from a double bottom and golden cross to rebounding stablecoin supply and surging DeFi activity — setting the stage for a potential run toward January’s highs.
Summary
- HBAR price has formed a golden cross pattern on the daily chart.
- It has also formed a bullish pennant pattern whose two lines are nearing their convergence.
- Hedera Hashgraph’s stablecoin supply has started to rebound.
Hedera (HBAR) token rose to a high of $0.2650 on Sunday, Aug. 10, up by 16% from its lowest point this month and by 107% from the lowest level this year.
HBAR price chart points to more gains
The daily timeframe chart points to more gains in the near term. First, it has formed a double-bottom pattern at $0.1260 and a neckline at $0.2298. This pattern often leads to more gains over time. The breakout is normally confirmed when the price retests the neckline, which has already happened.
Hedera price has also formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other on July 18. Like the double bottom, this pattern typically leads to more gains over time.
HBAR price has also formed a bullish pennant pattern, which has a vertical line and a symmetrical triangle. A breakout happens when the two lines of the triangle pattern near their confluence.
The bullish pennant has a height of about 58%. Measuring the same distance from the potential breakout point means that the coin will rise to $0.40, which coincides with the highest point in January this year.
Key Hedera Hashgraph metric attempts to rebound
The HBAR price breakout will happen if a crucial Hedera Hashgraph metric continues to recover.
DeFi Llama data shows that the stablecoin supply on Hedera plummeted from $224 million on August 1 to a low of $57 million. This was the second time this year that the metric has plummeted. In the first time, the supply dropped from $212 million on May 27 to $46 million on May 29.
There are signs that the stablecoin supply on Hedera is recovering, as it jumped from this month’s low of $57 million to $85 million. Stablecoin supply in a layer-1 network like Hedera is a bullish sign, as it indicates high activity.
Hedera’s total value locked in the decentralized finance industry is booming. It jumped to a high of $270 million, up from the year-to-date low of $143 million.
