HBAR price could be on the verge of a strong bullish breakout after forming a flag pattern despite the ongoing Hedera Hashgraph stablecoin woes.
Summary
- Hedera price is in the second phase of the Elliot Wave.
- It has also formed a bullish flag chart pattern.
- The stablecoin supply on HBAR has continued being highly volatile.
Hedera (HBAR) token was trading at $0.24 at last check on Sunday, Sep. 21, down by 22% from its highest point this year. Its price is about 88% above its lowest level this year.
Hedera Hashgraph’s primary catalyst is the upcoming deadline for the spot HBAR ETF, which will be on Nov. 8. There is a chance that the agency will approve the fund, as Hedera is a highly liquid Made in the USA coin. It has a market capitalization of over $10 billion and a daily volume of over $500 million.
The odds of an HBAR ETF approval will likely rise after the SEC delivers its verdict on several funds like Solana and XRP in October. If approved, the ETF will likely launch within weeks since it is on the Depository Trust & Clearing Corporation (DTCC) list.
Still, Hedera’s network has a significant risk in that the stablecoin supply has been erratic in the past few months. DeFi Llama data shows that the supply stands at $69 million, down from $149 million last Friday.
The HBAR supply also plunged from $208 million on July 31 to $54 million on Aug. 3. Before that, it moved from $212 million on May 26 to $76 million on Aug. 30. It is unclear why this is happening. Still, it could be that one or more entities are influencing the action.
HBAR price technical analysis
Hedera price chart | Source: crypto.news
The daily timeframe chart shows that the HBAR price formed a double-bottom pattern at $0.1260 and a neckline at $0.2288, its highest point on May 12.
Hedera price has retested that support, confirming a break-and-retest pattern, which is a sign of continuation. HBAR has also formed a bullish flag pattern.
Most notably, there are signs that it is now in the second phase of the Elliot Wave. This phase is usually a corrective one, with the main characteristic being that it must not retrace 100% of the first one. Its lowest level coincided with the 61.8% retracement level.
Therefore, the most likely HBAR price forecast is highly bullish, with the next target being at $0.3041, the highest point in July, which is about 28% from the current level.