HBAR price nears rebound as key Hedera metric recovers

Hedera Hashgraphs token could be on the verge of a bullish breakout after forming a highly bullish pattern and as a key stablecoin metric rebounds.

Hedera (HBAR) was trading at $0.1525 on July 8, slightly above this months low of $0.1255. The current price is still 30% below the March high, placing it in bear market territory.

A potential fundamental catalyst for the HBAR price is that the stablecoin supply in the network has started rising this month. It had a stablecoin supply of over $131 million, its highest level since May 28.

This supply has recovered substantially from last months low of $40.2 million, a sign that network activity is growing. Most of these tokens are USD Coin (USDC), followed by the Hedera Swiss Franc coin.

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More data shows that Hederas total value locked in decentralized finance has also started to rise. TVL has climbed to $168 million, up from $139 million last month. The most improved protocols were Bonzo Finance, Libre Capital, and DaVinciGraph.

Another key development is the SEC‘s decision to postpone two HBAR exchange-traded funds while it seeks additional public comments regarding investor protections. The commission delayed Canary’s ETF to September 9 and Grayscales to November 11.

Hedera Hashgraph is one of several layer-1 networks aiming to challenge incumbents like Ethereum and Tron. Its primary advantages include high throughput, low transaction costs, and a governance council composed of major global firms such as IBM and Google.

HBAR price technical analysis

Hedera price chart | Source: crypto.news

Technical indicators suggest that HBAR may be nearing a bullish breakout. The token has formed a double-bottom pattern with support at $0.1254 and a neckline at $0.2298. This pattern is typically associated with strong bullish reversals.

Earlier this year, HBAR fell from $0.3925 in January to a low of $0.1255 in April following the formation of a double-top pattern with a neckline at $0.2300.

The Relative Strength Index has moved from an oversold reading of 30 to above 52 and is trending upward. Meanwhile, the MACD indicator is approaching a crossover above the zero line.

Given these signals, HBAR will likely rebound and potentially retest the neckline at $0.2298, which would represent a 45% gain from current levels. A break above that neckline could open the door for further upside toward $0.30.

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