Key Insights:
- HBAR’s price is forming a bullish flag pattern, suggesting a potential breakout to $0.38.
- Elliot Wave analysis indicates HBAR could target $0.40 if the current wave follows the expected pattern.
- HBAR’s potential ETF approval could drive institutional interest, but ecosystem challenges pose risks.
Hedera’s HBAR price has formed a bullish flag pattern, indicating a potential breakout. The pattern began with a rally from $0.1230 to $0.3055 between June 22nd and July 28th. Since then, HBAR has traded within a descending channel, which is typical for bullish flag formations. If the pattern holds, the coin could target a price of $0.38, based on the flagpole distance.
Further supporting the bullish case is the positioning of HBAR within the second phase of the Elliot Wave cycle. This phase is characterized by a pullback, typically retracing between 50% and 61.8% of the previous wave’s distance. If this phase plays out, the next target for HBAR could be its previous high of $0.40, a price level roughly 86% higher than its current value. Additionally, the coin has remained above its 200-day Exponential Moving Average (EMA), which has acted as key support.
Double-Bottom Formation and Breakout Pattern Add to Positive Sentiment
HBAR has also formed a double-bottom pattern at the $0.1230 level, often viewed as a reversal signal. The neckline of this pattern is positioned at the May high of $0.2262. The recent break-and-retest of this neckline suggests that a bullish move could follow. Combined with the Elliot Wave analysis, these technical indicators paint a positive outlook for HBAR’s future.
The upcoming approval of the Canary HBAR ETF by the Securities and Exchange Commission (SEC) is a key factor driving HBAR’s potential. The decision is expected to attract significant institutional investment, particularly from U.S.-based investors. The Depository Trust & Clearing Corporation (DTCC) has already recognized the Hedera ETF filing, signaling progress toward approval.
Ecosystem Challenges Pose Risks for Hedera
Despite positive technical indicators, Hedera’s ecosystem growth remains a concern. Its decentralized finance (DeFi) sector continues to underperform, with a total value locked (TVL) of just $220 million. This is a relatively small amount compared to the broader $250 billion DeFi industry. Moreover, Hedera’s decentralized exchanges (DEX) have low trading volumes, and its stablecoin supply has decreased significantly to $86 million, limiting its market influence.
