Hedera [HBAR] declined 10% in the past day. While the market outlook is bearish, there’s a strong possibility the asset makes a rebound in the near term.
The chart analysis shows that the asset has now declined into a potential resistance-turned-support zone between $0.102 and $0.101. This level has previously prevented the price from witnessing an upswing on at least six separate occasions.
Price has seen a rebound since dropping into this support zone, pushing the asset higher from its current level, but this isn’t confirmation of a bullish market holding.
In fact, in a bullish scenario, price is likely to make an upswing, extending its gains as high as 31% and reaching a high of $0.134 on the chart from its present level.
Otherwise, the price could drop below this potential support level, trading below it and extending the consolidation pattern that has lasted for more than eight months now.
Can bulls defend the key support zone?
The direct answer to this is that there’s a high chance that bulls are likely to defend this level, preventing the price from falling.
The Money Flow Index, which tracks the inflow and outflow of capital in an asset, shows that there has been a cool-off in capital flow as it declines to 73.09 at the time of this analysis.
Capital flow has cooled, but the MFI remains in the “bullish phase,” which ranges between 50 and 80. The market outlook for HBAR could turn bearish if the MFI exits this phase and trades below 50.
For now, that isn’t the case. The Bull Bear Power Indicator shows that investors are still bullish, as the green histogram bar remains in formation. When there’s a green histogram bar, it implies that the bulls are still active in the market and could begin accumulating the asset again.
Whale activity points to a potential rebound
The rally has been largely driven by whales positioning for the upside. According to CoinGlass, the Whale Retail Delta, which tracks the involvement of both sides of the market, has surged significantly in the past day, reaching 0.481.
This surge confirms that whales have been the active drivers of the price of the asset, pushing it forward. The heatmap adds to the trend of price completing the bullish upswing to the target area on the chart.
The heatmap shows that there’s a large liquidity cluster above the current price, with most of it clustered around the $0.13 level on the chart. Clusters tend to act as magnets, pulling price toward them. In this case, the upward level remains the most likely target.
Final Summary
- HBAR could rebound 31% if bulls defend the $0.101-$0.102 support zone.
- Whale activity and strong capital flows support a potential move toward $0.134.
