About two months ago, we explored the price action of HBAR, which was in the process of forming a cup and handle pattern. Fast forward to the present and this pattern has become more defined and appears to have reached its midpoint.
Investors holding Hedera’s native HBAR cryptocurrency may feel disappointed or underwhelmed by its performance, especially over the past couple of months.
Many top cryptocurrencies saw significant gains, especially in the second half of July, but HBAR only managed to rally 38% from its 2022 lows.
Despite its uninspiring performance, the zoom in HBAR’s price chart reveals that there is still hope for HBAR investors.
The price is currently assuming an upward curve following the cup and handle pattern.
This means that the price may have bottomed and is currently in the second half of the cup pattern.
Expecting the unexpected
The curvature in the cup and handle pattern indicates that the HBAR price is now in the second half of the pattern. This means that a potentially parabolic move may be on the way.
However, this expectation is based on the assumption that the market is in a recovery phase after the crash in the first half of 2022.
There remains a significant risk of further downside, especially if economic and regulatory factors weigh adversely on the crypto market.
On the other hand, healthy growth targets will likely support its recovery. For example, HBAR recently passed the milestone of one million accounts on its main network.
Last week, we hit a huge milestone in the @hedera community – 1 million mainnet accounts since open access! There’s no better time to be on #Hedera #ℏashgraph than now. ⚡️ Check out Hedera’s community numbers on DragonGlass ~ https://t.co/INyeSWQ4uv pic.twitter.com/mVZJDxsLZx
— DragonGlass (@dragonglassme) August 1, 2022
In addition, HBAR continues to record healthy growth and utility in its network. Its developer activity metric saw a strong spike in July.
NFT trading decreased significantly in the second half of July, but still maintained healthy levels.
Some of the recent development activities include the integration of Hedera with DLT networks.
This move aimed to enhance the transparency and visibility of HBAR applications within the WEB3 space. It also confirms Hedera’s commitment to being a more competitive smart contract network.
We are excited to announce it @metrikacothe leader in business intelligence for DLT networks, has integrated @Hedera to enable improved visibility and transparency for #HBAR dApps across the ecosystem – creating a best-in-class experience for #Web3 app developers ⚡️ pic.twitter.com/0RW29SZmol
— The HBAR Foundation (Accelerating Hedera) (@HBAR_foundation) August 3, 2022
Hedera continues to aggressively pursue more growth opportunities in WEB3 despite HBAR’s declining performance in recent months.
The next few months look promising in terms of recovery. However, this does not necessarily rule out unexpected downside moves in the market, hence the need to proceed cautiously.