Hedera (HBAR) has managed to recoup all of its October losses with an impressive 17% gain in the past 24 hours. Although the sudden rise in prices has spread optimism across the market, investor sentiment remains cautious.
Technical indicators point to a possible continuation, but holders are showing mixed signals despite a strong rebound in prices.
Hedera investors express doubts
The squeeze momentum indicator shows that Hedera is now entering a consolidation phase after more than a month of relative inactivity. This is indicated by the appearance of a black dot on the chart, indicating a compression of volatility. Historically, such squeezes precede major breakouts when momentum shifts to either bullish or bearish positions.
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If this squeeze releases on a bullish note, HBAR could potentially reap significant profits. Considering the recent price rally, a bullish breakout could push the altcoin towards new near-term highs.
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Despite the solid price performance, HBAR investors still exhibit bearish momentum. The sentiment indicator remains below the neutral 50, indicating a lack of conviction among traders.
This negative outlook can be attributed to altcoins struggling to sustain gains at the beginning of the month. While the 24-hour rally signals a technical recovery, broader sentiment has yet to follow.
HBAR price may continue to rise
At the time of writing, HBAR is trading at $0.211, just below the $0.212 resistance level. If investor confidence improves, altcoins may try to break through this barrier and the upward momentum is poised to continue.
HBAR’s 17% surge has fully recovered from October’s losses. If the bullish momentum continues, the cryptocurrency could extend its rally towards $0.219 and break through $0.230 in the next session.
However, if selling pressure increases, HBAR could return to the $0.200 support level. A further decline below this could push the price towards $0.178, erasing recent gains and invalidating the current bullish outlook.
