The Hedera Hashgraph price has remained in a tight range in the past few weeks. HBAR was trading at $0.2400 on Monday, up by over 80% from its lowest level this year but down by 23% from the year-to-date high of $0.3050.
HBAR Price Bullish Flag and Elliot Wave Analysis
Technical analysis suggests a potential surge in Hedera price. The daily chart shows that the HBAR price has formed a bullish flag pattern. This pattern is characterized by a vertical line and a falling channel, resembling a hoisted flag. It is currently forming the channel, which will open it up for more gains.
The other notable catalyst for the HBAR price is that it is now in the second phase of the Elliot Wave. This phase is characterized by a between 50% and 61.8% retracement of the initial surge. In this case, it retraced about 61.8%.
The third phase is usually the longest, which could see it jump to the key resistance at $0.40, which is about 72% above the current level. This price is its highest point in January this year.
The coin has already retested the important support at $0.2298, the neckline of the double-bottom pattern at $0.1260. This means that it has formed a break-and-retest pattern, which is a common continuation sign.
HBAR price has also remained above the 100-day Exponential Moving Average (EMA). It is also above the Ichimoku cloud indicator, reinforcing the bullish case.
Hedera ETF Approval Hopes
The main fundamental bullish case for the Hedera price is that the Securities and Exchange Commission (SEC) will likely approve the spot HBAR ETFs filed by Canary and Grayscale.
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This ETF, whose deadline is in November, will give American investors a chance to invest in it without worrying about security keys. Recent data shows that there is strong demand for crypto ETFs, with Bitcoin and Ethereum funds having over $57 billion in inflows.
The other notable catalyst for Hedera is its selection as the blockchain provider for the upcoming Wyoming stablecoin. It likely did that by considering its speed and throughput, which are higher than those of other networks.
Still, Hedera has some notable challenges. One of them is that its decentralized finance (DeFi) ecosystem is not doing well. Its total value locked (TVL) remains at $240 million and is not growing. This TVL is significantly smaller than that of other recently launched blockchains.
Additionally, there are signs that the stablecoin supply in the network is not doing well. The supply has plunged by about $79 million in the last seven days to just $69 million today.
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