If you have been keeping an eye on Hedera (HBAR), you have probably noticed the persistent downward trend over the last few months. Since its summer peak in August, the price has been in a slump, leaving many investors wondering what is next for the enterprise grade public network. The slide has been largely tied to a slowdown in network activity, a key metric for the health of any blockchain project.
However, the crypto market is known for its dramatic turnarounds, and Hedera might be quietly setting the stage for one. While the fundamental picture has been less than stellar, the technical charts are starting to tell a very different and much more optimistic story. Several classic bullish patterns are forming, suggesting that a significant price rebound could be on the horizon. For traders and investors who thrive on technical analysis, HBAR is suddenly looking very interesting.
When you look at Hedera's price chart, it is not just random noise. Experienced analysts see patterns that can hint at future price movements. Right now, HBAR is flashing a few key signals that suggest the bears might be losing their grip.
One of the most prominent patterns is a falling wedge. Think of this as a period of consolidation where the price makes lower highs and lower lows, but the range gets tighter and tighter over time. It is like a spring coiling up. While it looks bearish on the surface because the price is declining, a falling wedge is typically a bullish reversal pattern. It often ends with a powerful breakout to the upside as buying pressure finally overcomes selling pressure.
Hedera has been trading within this pattern for weeks. A decisive move above the upper trendline of this wedge would be the first major sign that a new uptrend is beginning. This is the kind of signal that gets technical traders excited, as it provides a clear entry point for a potential rally.
Adding another layer to the bullish case is the potential formation of a double bottom. This is another classic reversal pattern that looks like the letter “W” on the price chart. It happens when the price hits a low point, bounces back, falls again to a similar low, and then bounces back once more.
This pattern indicates that the asset has found a strong level of support and that selling pressure is exhausted. For HBAR, the key level to watch here is the neckline of the “W” pattern, which sits around $0.052. A breakout above this price would confirm the double bottom and could trigger a wave of buying, further fueling the rally.
It is not just about price patterns. We also need to look at momentum indicators, and the Relative Strength Index (RSI) is giving us a very telling clue. The RSI measures the speed and change of price movements. Right now, we are seeing a bullish divergence on the daily chart.
In simple terms, this means that while HBAR’s price was making new lows, the RSI was actually making higher lows. This disconnect suggests that the downward momentum is fading fast. The sellers are getting tired, and the buyers are quietly starting to step in. A bullish divergence like this one often precedes a strong price reversal.
So, if these patterns play out, what kind of gains could we be looking at? A breakout from the falling wedge has a measured target that points to a significant move. Analysts are eyeing a potential rally to the $0.088 level. From the recent low of around $0.044, that represents a jaw dropping upside of nearly 100 percent.
Of course, it will not likely be a straight line up. The first major hurdle to clear is that $0.052 neckline we mentioned earlier. If HBAR can break and hold above that level, it would build the confidence needed to push toward higher targets. But the potential for a near doubling in price is what makes this setup so compelling.
While the technicals are painting a rosy picture, we cannot ignore the fundamentals. The main reason for HBAR’s recent decline has been weakening on chain activity. Metrics like daily active addresses and transaction counts have been on a downward slope. For long term sustainable growth, a project needs a vibrant and active ecosystem.
The growth of DeFi applications on Hedera, like the decentralized exchange SaucerSwap, could be a key catalyst to watch. If these platforms can attract more users and liquidity, it would drive up network activity and provide the fundamental support needed to sustain a price rally. The technicals can kickstart a move, but the fundamentals are what will keep it going.
No analysis is complete without considering the risks. A technical setup is a probability, not a certainty. The bullish case for Hedera has a clear invalidation point. If the price fails to break out and instead falls, a daily candle close below the recent low of $0.044 would negate the entire setup.
A break below this critical support level would indicate that sellers are still in control and could lead to another leg down. That is why risk management is so important. Traders watching this setup will have a clear line in the sand to know when it is time to step aside.
Hedera is at a fascinating crossroads. The price chart is filled with bullish signals that suggest a major rebound could be just around the corner. A breakout from the falling wedge, confirmation of a double bottom, and bullish momentum divergence all point to significant upside potential.
However, the underlying network activity needs to improve to support a sustained rally. For now, all eyes are on the key price levels. A break above $0.052 could be the spark that ignites a run toward $0.088, while a drop below $0.044 would send the bulls back into hibernation. The next few weeks could be decisive for HBAR’s future direction.
.png)