HBAR stands out with its resilient bullish sentiment as the cryptocurrency market faces recent headwinds. Hbar follows a range-bound ascending pattern, drawing support from well-defined resistance levels.
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A Consistent Pattern Despite Recent Challenges
HBAR is on the brink of concluding its third consecutive month following the ascending pattern mentioned earlier. Despite recent developments that doubt its sustainability, HBAR remains within this pattern. Notably, the altcoin made a bullish breakout attempt in mid-August, only to retract into the familiar range.
The swift breakout and subsequent return to the range indicate a potential weakening of the bullish momentum. Moreover, HBAR’s price was rejected from its recent peak as it encountered a resistance level last tested back in April. As of the time of writing, HBAR is trading at $0.06234
Monitoring HBAR’s Momentum
The Money Flow Index (MFI) for HBAR has declined since mid-August, coinciding with its price peak. If this trend of outflows persists, it could lead to HBAR testing a support level around $0.05657
The sentiment surrounding the cryptocurrency has also cooled down following its mid-month surges, aligning with the recent market pullback.
Development Activity and Market Consensus
Furthermore, Hedera’s development activity has notably slowed down in recent days. These observations could contribute to a weaker market consensus, potentially making HBAR more vulnerable to a significant price drop.
FedNow’s Impact on HBAR
Recent events, particularly announcements related to FedNow, have possibly boosted confidence among HBAR traders. However, the decline in sentiment metrics suggests that the market reaction was subdued, hinting at concerns about an extended selloff.
The FedNow announcement is a crucial milestone for Hedera. It has the potential to introduce a substantial amount of liquidity to its blockchain. Despite this, the absence of an immediate parabolic rally in prices raises questions.
Gradual Adoption of FedNow
It’s important to note that the influx of liquidity into Hedera will take time. Hedera’s co-founder, Mance Harmon, mentioned that mass adoption for FedNow will take time.
Harmon’s stance notwithstanding, he anticipates a surge in utility when merchants embrace the platform. This gradual adoption could fuel demand for the HBAR cryptocurrency.
Long-Term Potential and Short-Term Uncertainties
The recent developments surrounding FedNow could lay the foundation for HBAR’s long-term potential. This aligns with the broader trend, which already displays indications of a pivot, as reflected in the 200-day moving average. Nonetheless, the short-term price action of the cryptocurrency remains susceptible to various challenges.
Conclusion
As HBAR navigates through the dynamic cryptocurrency landscape, it continues to exude a bullish sentiment despite facing recent market headwinds. The coin’s adherence to an ascending pattern and its response to the FedNow announcement paints a picture of both long-term promise and short-term uncertainty. The interplay of these factors will likely determine HBAR’s trajectory in the coming months.
