Key Takeaways
HBAR bulls need to be cautious of a price dip to a nearby liquidity pocket. A dip to this demand zone would be followed by a bullish reversal, provided Bitcoin can remain above $112k as well.
Hedera [HBAR] was back below the Value Area High at $0.264. This VAH was plotted using the Fixed Range Volume Profile, using price action from the beginning of the year to press time.
In an earlier analysis, AMBCrypto had noted that the $0.285-$0.3 was a key supply zone for HBAR.
This has proven true once again. The altcoin was unable to muster the strength to rally beyond $0.3, briefly making a high at $0.305 on the 27th of July before falling lower.
However, the longer-term market structure was bullish after the strong gains the token noted in July.
HBAR traders, brace for a liquidity hunt
Source: HBAR/USDT on TradingView
The FRVP and the $0.234 support were highlighted on the 1-day price chart. The structure was still bullish, as the price has not broken below the higher low at $0.223.
The price action and the technical indicators showed that bullish strength might be waning.
The A/D indicator was unable to establish an uptrend, which would reflect steady demand for the altcoin. Similarly, the CMF also dipped below -0.05 in recent days.
This showed significant capital outflows from the market.
Source: Coinglass
AMBCrypto expects a price dip to $0.22 or slightly lower soon. Investors can scoop up the dip, while traders might want to stay sidelined.
The build-up of liquidity at the $0.218-$0.223 region since mid-July made it a strong magnetic zone.
It is highly likely to drag HBAR prices lower, although this dip might be brief. The longer-term outlook would still remain bullish. A drop below $0.206 would be cause for concern for traders and investors.
In this scenario, a more conservative outlook would be feasible.
A pullback this deep can be expected if Bitcoin [BTC] fails to defend the $112k support zone and falls below $110k in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
