Hedera (HBAR) Price Prediction: Will HBAR Crypto Continue Rising After 30% Rally?

Hedera [HBAR] has gained by more than 30% in 24 hours, outperforming all the top 30 largest cryptocurrencies by market capitalization.

Hedera [HBAR] price continues rising after a 30% gain in 24 hours. At press time, the altcoin traded at a five-month high.

Technical analysis showed that HBAR was in an uptrend, despite being overbought. However, other indicators suggested that the bullish momentum was strong.

Meanwhile, derivatives data indicated rising speculative activity around HBAR, with high trading volumes and Open Interest. Moreover, the DeFi activity on the Hedera blockchain surged, which could fuel the HBAR rally.

Hedera (HBAR) token price outperformed the market on 21 July as it rallied by more than 30% in 24 hours. The gains came as the cryptocurrency market showed signs of recovery following the recent downturn.

At press time, HBAR price continued rising and traded at $0.118. This marked a five-month high for the altcoin, with the last time it traded at this level being on 14 February.

The uptrend also saw HBAR price rally by over 300% year-to-date (YTD). At the same time, the altcoin was trading seventh among the top 30 largest cryptocurrencies by market capitalization.

Hedera (HBAR) price technical analysis

Hedera (HBAR) 4-hour chart. Source: TradingView

HBAR’s 4-hour chart showed that the altcoin was in an uptrend, despite being overbought. The uptrend was signaled by the moving averages, which showed that the 50 4-hour exponential moving average (EMA) (yellow) was above the 200 4-hour EMA (purple).

At the same time, the 50 4-hour EMA was also flattening out, which showed that the uptrend was losing momentum.

However, other technical indicators suggested that the bullish momentum was still strong. The Stochastic oscillator was showing that HBAR was in overbought territory, with the %K line at 98 at press time.

This indicated that traders might be choosing to hold and not sell HBAR despite the overbought levels.

Moreover, the Directional Movement Index (DMI) showed that the upward trend was strong. The positive DI (blue) was higher than the negative DI (orange), as the gap between them widened, showing bullish momentum.

Additionally, the Average Directional Index (ADX) was tipping north, which indicated that the press time trend was positive. The ADX value at 42 also suggested that the uptrend was strengthening.

Resistance and support levels

Fib levels showed that the next resistance for HBAR price was at the 1.618 Fibonacci level ($0.13). The last time that HBAR flipped this resistance, it surged to $0.18.

Therefore, if buyers continue accumulating and pushing HBAR price up, a similar rally could occur.

On the other hand, traders should watch out for support at $0.0546 as failing to hold this support level could trigger a trend reversal.

Derivatives data showed rising speculative activity around HBAR. At press time, trading volumes for the altcoin in this market stood at $1.37 billion, an over 104% increase within 24 hours.

This showed that traders were speculating on HBAR’s price movements and opening new positions.

Moreover, Open Interest had also soared to $118M, its highest level since late April. This indicated that traders were adding to their positions, which could amplify the price movements.

When the Open Interest rises alongside the price, it shows bullish momentum and conviction in the uptrend. Moreover, Funding Rates remained positive, showing there was a higher demand for long positions.

If the market maintains this bullish outlook, HBAR could extend its gains. However, a spike in Open Interest also shows rising leverage, which could in turn cause volatile price movements.

DeFi activity on the Hedera blockchain has surged, which could be fueling the HBAR rally. At press time, DeFiLlama data showed that Hedera’s DeFi Total Value Locked (TVL) stood at $93M.

This marked an 82% increase from the previous week, highlighting the rising activity in the DeFi space on the Hedera network.

Furthermore, DeFi volumes also surged significantly over the past week, as can be seen in the graph below. Rising DeFi activity is usually a catalyst for price growth.

Therefore, if this TVL continues to rise, it could support the bullish momentum and drive more gains for HBAR.