Hedera [HBAR] Thanks to it, it looks ripe for an unprecedented recovery…


Hedera’s underlying cryptocurrency, HBAR, appeared set for a bullish recovery in the first week of May after falling into oversold territory. This was before the market unexpectedly deteriorated, causing further declines, but before going bullish once again.

HBAR has received a discount of around 42% in the last seven days as the cryptocurrency market experienced one of the worst crashes in history. The cryptocurrency plummeted from a weekly high of $0.155 to a low of $0.073.

It has since rebounded from its long-term downtrend line and has recovered to $0.1028 at the time of writing. The token has risen 31.84% in the last 24 hours.

Source: TradingView

A rebound could be a sign that the HBAR bulls are finally ready to take some action. This outlook is further supported by the oversold price of HBAR, as pointed out by the RSI. At press time, the RSI rested at the 31st. Money Flow, on the other hand, seemed more likely to accumulate.

hbar indicators

Source: TradingView

HBAR’s ADX on May 12 reflected a strong trend at 57.14, but -DI has been slightly consolidating over the past few days. This could be a sign of the end of the bearish trend given the heavy sell-off of HBAR.

HBAR’s on-chain activity may also coincide with bullish recovery expectations. For example, the total supply held by the whale metric shows that whale stocks have increased significantly over the past 24 hours.

The financing rate for FTX derivatives showed a rapid recovery during the same period. This was after falling to the previous lowest monthly level.

Hedera HBAR 19.25.31 12 May 2022

Source: Santiment

long term sale?

A recovery in interest in the derivatives market may reflect activity in the spot market. It also helps to formulate the view that the whales are consistent with the supply they hold and are ready for a bullish reversal. However, the latest events in the market have always shown that there is more downside risk.

HBAR may continue to extend its bearish performance if it fails to secure sufficient buying volume. Such consequences can occur if the present emotion prevails. The markets are closely related, which means that altcoins like HBAR will continue to mimic the price behavior of BTC. In other words, the recovery of HBAR will largely depend on whether or not Bitcoin will yield to the bulls.

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