Hedera Hashgraph price rare patterns point to an HBAR rebound

Hedera Hashgraph price has fallen sharply in recent days as the crypto industry outlook worsens.

Hedera Hashgraph (HBAR) fell to $0.2483, a decline that mirrored other popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Most cryptocurrencies crashed, and the total market cap of all cryptocurrencies reached $3.24 trillion.

Hedera’s withdrawal coincides with a decline in the overall value of assets locked in the decentralized finance ecosystem. According to DeFi Llama, TVL has dropped from its year-to-date high of 1.35 billion tokens to 675 million HBAR.

TVL in US dollars fell from $209 million to $165 million on December 3. This decline indicates that investors are withdrawing funds from Hedera’s DeFi platforms such as SaucerSwap, Bonzo Finance, and HbarSuite.

To be fair, Hedera is not the only blockchain network experiencing a decline in DeFi assets. Other popular chains such as Cardano, Ethereum and Solana have also witnessed capital flight in recent days. Historically, investors tended to exit these platforms during periods when the cryptocurrency market was weaker.

Despite the current decline, Hedera Hashgraph has some positive fundamentals that could push its price higher in the long run. The network has partnerships with major global companies such as IBM and Google, both of which are members of the governing council.

Hedera is also positioning itself as a major player in the Real World Asset Real World Asset tokenization industry. Tokenization means converting illiquid assets into liquid assets that can be easily moved and bought and sold. Hedera’s high transaction speeds and low costs make it an attractive option for developers in this space.

Another potential catalyst for HBAR is the possibility of the Securities and Exchange Commission approving a spot HBAR ETF in 2025. The SEC may approve the ETF because it does not classify HBAR as a security, according to a senior Bloomberg analyst.

Hedera Hashgraph price forming a bullish pattern HBAR price chart | Source: crypto.news

The daily chart shows that the HBAR price has formed a bullish chart formation. Specifically, it develops a falling wedge pattern, which is usually formed by the consolidation of an asset between two falling trend lines. When two lines meet, a bullish trend is usually seen.

Additionally, Hedera is forming a bullish pennant formation characterized by a long uptrend line followed by consolidation. This pattern also often leads to a strong uptrend over time. HBAR remains above the 50-day moving average and the key support and resistance pivot point of the Murrey Math Lines at $0.1953.

Therefore, a case can be made against Hedera’s price. If the bullish patterns persist, HBAR could recover and retest the year-to-date high of $0.3940; This represents a potential gain of approximately 66% from the current level. However, the bullish view will be invalidated if the coin falls below the major S&R level at $0.20.