What to know:
- Hedera Hashgraph (HBAR) price broke key resistance and turned it into support, strengthening the bullish outlook.
- Technical indicators, including MACD and Bollinger Bands, show growing momentum and potential upside.
- HBAR needs to break above $0.076 resistance to confirm further gains.
HBAR price continued moving higher after the resistance level was breached, with technical indicators pointing to an increase in buying pressure. The crypto is trading above the vital support area, which increases the likelihood of the upward trend continuing.
At the time of writing, HBAR is trading at $0.07317, up 5.05% over the last 24 hours. The token recorded $156.38 million in daily trading volume and had a market capitalization of $3.20 billion, showing renewed interest from market participants.
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HBAR Price Turns Previous Resistance Into Support
Crypto analyst Alpha Crypto Signal observed on July 23 that HBAR price was able to transform a local horizontal resistance area into a support area. Technical investors see such moves favorably, as it indicates that the buyers are defending the area that used to act as a barrier to them.
As per Alpha Crypto, as long as HBAR is above the support zone that has been regained, the overall near-term bias will still be inclined towards the upside. This is because retaining this level will help foster further buying interest.
The breakout is also a positive signal about the overall market structure of HBAR price, having experienced several weeks of indecision. Although nothing can be predicted for certain, it can help boost the probability of the ongoing recovery continuing if the breakout level holds.
Technical Indicators Show Buying Strength
HBAR price is currently trading around $0.07317, way above the mid Bollinger Band that is situated around $0.06965. Having pulled back from its lower level, HBAR is currently approaching the upper Bollinger Band that stands at $0.07616, with the lower one standing at $0.06314.
Such a configuration indicates that the buyers will slowly force the prices to move towards the resistance zone. A break above the upper Bollinger Band might signal further gains in the asset, but on the other hand, there can be some short covering at those levels.
The Moving Average Convergence Divergence (MACD) indicator has generated a bullish crossover because the MACD line crossed above the signal line to the value of -0.00132 while the signal line is at -0.00229. Furthermore, the MACD histogram has reached 0.00097 as well, suggesting that buying momentum is growing.
Although both MACD lines are still below the zero level, the bulls can see the early sign of the weakening sell-off pressure from the bears. However, confirmation may be needed in the form of new higher highs and lows for HBAR.
HBAR Targets Next Move After Breakout
The next important aspect for HBAR is whether it can stay above the new support level while challenging the resistance level of $0.076 around the upper Bollinger Band.
A decisive move above this level might improve the bull bias and invite more buyers into the picture. Conversely, failing to defend the recovered support level will make the current setup weak and open the door to another drop back to the middle Bollinger Band.
At the moment, technical indicators suggest that sellers have lost short-term control, but the next sessions will show whether HBAR price manages to convert this breakout into a more stable growth trend.
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