The cryptocurrency market is currently experiencing significant selling pressure, with both Bitcoin (BTC) and Ethereum (ETH) seeing declines of over 9% in the last 24 hours. This correction has led to over $1.93 billion in liquidations across the market, with long positions bearing the brunt of the losses, totaling more than $1.79 billion wiped out in a single day.
This intense volatility has had a substantial impact on major altcoins, including Hedera (HBAR), which has fallen by more than 11%. However, despite this sharp pullback, the chart analysis suggests that HBAR may be forming a technical structure that could lead to a potential rebound in the upcoming sessions.
Descending Triangle Pattern
On the weekly chart, HBAR has been consolidating within a descending triangle pattern. This pattern is characterized by decreasing highs as sellers exert downward pressure, while buyers consistently defend a horizontal demand zone. Although descending triangles are typically considered bearish continuation patterns, they can often lead to significant countertrend rallies when the support level holds firm.
The recent price drop from $0.1755 has brought HBAR back to a critical support zone around $0.1247. This level has served as a significant demand area for several months, and each test of this range has historically prompted a strong upward reaction from buyers, indicating accumulation and potential seller exhaustion.
Currently, HBAR is trading just below the 100-week moving average, which is situated near $0.1514. A successful reclaim of this moving average would be a key indicator that buyers are regaining control of the market momentum.
Outlook for HBAR
If bullish sentiment prevails and buyers successfully defend the $0.1247 support range, leading to a price push above the 100-week moving average, momentum could accelerate rapidly. This scenario could enable HBAR to retest the descending trendline resistance, which is currently located near the $0.19 level. A decisive breakout above this trendline would signify a potential trend reversal and open the possibility for a more substantial rally.
Conversely, if the support level fails and the price closes below this zone with significant trading volume, the descending triangle pattern could break to the downside. Such a breakdown would expose HBAR to further declines, potentially targeting the $0.10 area, where the next significant support level is identified.
The upcoming weekly closing price will be a crucial determinant of HBAR's short-term trajectory. As long as buyers continue to defend the base of the descending triangle, a rebound remains a plausible outcome.