- •HBAR has entered the second phase of its Elliott Wave pattern, suggesting a potential price reversal following the current pullback.
- •The coin's formation of a bullish flag chart pattern further supports a strong breakout, potentially targeting $0.40.
- •The growth of stablecoin supply on Hedera, alongside ETF approval, could significantly boost HBAR's market demand.
HBAR, the native token of Hedera Hashgraph, has seen a notable pullback recently, dropping by 30% from its year-to-date high. This retreat marks the coin’s entry into a bear market phase, prompting analysts to reassess its future outlook. Despite the recent dip, technical analysis suggests that HBAR could be primed for a strong rebound in the coming weeks.
Currently, HBAR is in the second phase of its Elliott Wave pattern. This phase typically involves a correction of the previous surge, with the price retracing between 50% and 61.8% of its prior gains. The initial upward momentum, which began with a low of $0.1265 in June and peaked at $0.3047 in July, is now followed by this pullback. The price currently hovers around $0.2147, providing a potentially lucrative entry point for investors if the coin completes this phase and begins its next upward movement.
Furthermore, HBAR has formed a bullish flag pattern on the daily chart. The flag pattern is known for its upward breakout potential, often signaling a sharp move higher after the consolidation phase. This chart formation strengthens the argument that HBAR might soon see a significant rise, likely targeting its previous high of $0.40, an 85% increase from current levels.
Stablecoin Growth Provides Additional Support for HBAR
An important factor influencing HBAR’s potential growth is the expansion of stablecoin use within the Hedera ecosystem. Data from DeFi Llama shows that the USDC supply on Hedera increased by $45 million over the past week, reaching a total of $115 million. As stablecoins are critical for the liquidity and functionality of layer-1 networks, this growth is expected to benefit HBAR’s value in the long term.
Another significant catalyst for HBAR is the potential approval of a Hedera-focused exchange-traded fund (ETF). The U.S. Securities and Exchange Commission is currently evaluating multiple ETFs, and an HBAR ETF could spark increased demand from institutional investors. This could lead to an influx of capital into Hedera, further driving the price of HBAR upwards.