Hedera Hashgraph token could be on the verge of a bullish breakout after forming an inverse head and shoulders pattern. HBAR token was trading at $0.1788 on Tuesday, higher than the year-to-date low of $0.1225.
HBAR Price Technical Analysis
The daily chart shows that the Hedera price has rebounded and moved to a high of $0.1783. While the token remains below the 50-day and 100-day Exponential Moving Averages (EMAs), it has formed an inverse head-and-shoulders pattern.
The pattern consists of a neckline, a head, and two shoulders. It has now moved to the right shoulder, which may trigger a bullish breakout. If this happens, the next point to watch will be the psychological point at $0.200.
A move above the neckline at $0.20 will confirm more gains, potentially to the key resistance at $0.2871, its highest swing on March 3. Also, the Relative Strength Index (RSI) and the MACD have all pointed upwards.
The bullish HBAR price forecast will become invalidated if it drops below the psychological point at $0.1500. A move below the support will signal more downside to the head section at $0.1225.
READ MORE: New $6.4 Billion Tech Company Joins Hedera Hashgraph (HBAR) Council
Hedera Hashgraph Faces Challenges
The main bullish catalyst for the HBAR price is the ongoing crypto market bull run as Bitcoin approaches a record high.
Fundamentally, the network faces major challenges despite the hype surrounding it. Data shows that its ecosystem is not growing. For example, data indicates that there are only DeFi applications on its network, with four of them having no assets, while only six of them have a total value locked (TVL) of over $1 million.
More data shows that Hedera Hashgraph’s stablecoin supply has crashed in the past few days. It has just $81 million in stablecoins, down from over $200 million earlier this month. Falling stablecoin supply is a sign that the network is not growing.
Hedera Hashgraph and its applications are also not making money. Its daily chain fees range between $810 and $4,000, which is smaller than most networks. Additionally, its app revenue has plummeted to less than $500 a day, with most of it coming from Stader.
Hedera Hashgraph’s DEX volume has also remained low in the past few months. Its daily DEX volume remained below $3 million, significantly lower than that of other chains like Ethereum and Solana.
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