- Hedera price is up 2% in the last two days, with prospects for more gains as buying pressure increases.
- The surge comes after short traders take profit orders were triggered around the $.0560 level, marked by the 100-day EMA.
- The ensuing buying pressure could see HBAR rise 5% to the supply zone around $0.0606
Hedera (HBAR) price is trading with a bullish bias in an attempted recovery from a recent downtrend. The bullishness comes as Bitcoin (BTC) and Ethereum (ETH) continue in a range-bound movement, consolidating along an equilibrium level as the crypto market craves for a catalyst.
Hedera price could rally 5% if it breaches $0.0582
Hedera (HBAR) price is en route north after a recent downtrend initiated profit-taking among long traders. The ensuing selling pressure sent HBAR down 10% to find support for the 100-day Exponential Moving Average (EMA) at $0.0560. This is likely around the take profit level for traders who shorted the altcoin, with the subsequent buying pressure initiating the ongoing uptrend.
Hedera Price Forecast as new buy orders come in
Hedera (HBAR) price is currently confronting the 50-day EMA at $0.0572, a supplier congestion level that will determine the next move for HBAR. If the altcoin makes a decisive 3-hour candlestick close above this level, it could complete the 5% rally to the supply zone above.
Traders are willing to sell aggressively in the supply zone because once the price hits this order block, the balance would have shifted to the distribution side.
However, if the supply zone fails to hold as resistance and Hedera price shatters through this bearish order block, it would flip it into support, thus a bullish breaker. Further north, the altcoin could record a new range high above $0.0638.
HBAR/USDT 3-hour chart
Conversely, if seller momentum overpowers the bulls, Hedera price could drop, potentially writing off the recent gains to tag the 200-day EMA at $0.0545. In the dire case, HBAR could slip through the uptrend line, with a decisive move below this support level invalidating the longstanding uptrend.
The Relative Strength Index (RSI) position below 50 questions the overall bullish outlook, suggesting a not-so-strong momentum. Similarly, the Moving Average Convergence Divergence (MACD) indicator is in the negative zone, making it easy for bears to take over.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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