HBAR Price Contemplates $0.57 Retest as Hedera’s Stablecoin Hits Record Highs

Hedera (HBAR) is contemplating retesting the $0.57 resistance level. This will likely happen soon due to surging network activity as Hedera’s stablecoin market cap hits an all-time high. With technical and on-chain data leaning bullish, will the altcoin rebound, or will HBAR price continue to drop?

HBAR Price Contemplates Retesting $0.57 Resistance

HBAR value today is showing signs of a bullish breakout. At press time, HBAR trades at a daily high of $0.19 with a 4.4% intraday gain from the daily low of $0.182. The rally coincides with an over 60% surge in Hedera’s stablecoin market cap to an all-time high of $91 million, according to data from DeFiLlama.

After its recent intraday gain, HBAR price is now attempting to flip resistance at the 23.6% Fibonacci level of $0.19 into support. If bulls defend this support, and the rally continues above the key resistance of $0.26, HBAR will make a 2x rally to $0.57.

The DMI index also leans towards a bullish Hedera price prediction as the +DI line (blue) continues oscillating above the -ve DI line (orange). This shows that despite HBAR’s price rally faltering after hitting a multi-year high of $0.39, buyers are still in control of the trend. As long as the DMI maintains this momentum, the price has room to make gains.

The RSI also fluctuates at a neutral level of 50, and this indicates that the market is at an equilibrium with neither bears nor bulls having dominance over price. Unless the RSI tips north and makes higher highs to confirm a bullish momentum, HBAR price may remain stuck within a tight range until buyers or sellers step in.

While the DMI is leaning bullish as HBAR attempts to turn the $0.19 resistance level into support, the ADX line is tipping south. This is indicative of a weak trend that may negate the above bullish thesis.

$1.68M Long Positions Risk Liquidation

One of the catalysts that may support a HBAR price rally to see it retest $0.57 is the looming risk of long liquidations. Data from Coinglass shows that at the $0.192 price, $1.68 million long traders risk having their positions closed through forced buying.

If these positions are closed, the resulting buy-side pressure will help drive a rise in the RSI. This may aid the breakout from the key resistance level at $0.26 and pave the way for a bullish leg to $0.57.

Considering the bullish setup on the daily chart and the risk of $1.68 million long liquidations as HBAR tests resistance at $1.92, it is likely that an upward rally will occur. However, these gains will depend on the market sentiment remaining bullish.