Hedera Hashgraph’s price rose for the third consecutive day as the Santa Claus rally returned in the crypto market.
Hedera Hashgraph (HBAR) rose to $0.3300 on Christmas Eve, up over 30% from its lowest level last week.
This rebound happened as other popular altcoins recovered. Other top performers included Helium (HNT), JasmyCoin (JASMY), and VeChain (VET).
There was no Hedera-specific news to fuel the jump. As such, the most likely reason for the rally was based on sentiment and technicals. Hedera’s sentiment among traders improved after Canary Capital filed for the first spot in Hedera ETF in November.
Eric Balchunas, the senior ETF analyst at Bloomberg, predicted that the Securities and Exchange Commission will easily approve the HBAR fund. He argued that the agency has not labeled HBAR a security as it has done with other tokens like Solana and Ripple.
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Hedera’s rebound also happened after the futures open interest plunged to $209.7 million on Dec. 22 from last month’s high of $460 million. Most coins often rebound when the open interest and sentiment among traders drops.
Hedera Hashgraph open interest | Source: CoinGlass
Hedera Hashgraph price formed two bullish patterns
HBAR price chart | Source: crypto.news
The most likely reason why the HBAR price has rebounded is what crypto.news predicted last week. In that report, we noted that the coin formed a double-bottom pattern at $0.2350, and whose neckline was at $0.3310, its highest swing on December 13. Such a bottom is usually a sign that bears are afraid of placing short sales below that price.
Hedera also formed a falling wedge chart pattern, which is shown in purple above. The upper side of this pattern connects the highest level on Dec. 7, 18, and 20. The lower side of this wedge links key downswings this month. A falling wedge often leads to more gains.
HBAR price also formed a bullish pennant pattern, comprised of a long flag pole followed by a triangle pattern.
Hedera also remained above the 50-day moving average, signaling that bulls were still in control as it retreated. It has now formed the three white soldiers candlestick pattern, which is characterized by three consecutive candlesticks.
Therefore, the outlook for the HBAR price is bullish, with the next point to watch being the year-to-date high of $0.40, which is 20% higher than the current level.
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