Hedera Hashgraph (HBAR) Price Prediction as the Token Forms Bullish Chart Patterns

Hedera Hashgraph price has retreated sharply in recent days as the outlook for the crypto industry has worsened.

The price of Hedera Hashgraph (CRYPTO: HBAR) has declined sharply in recent days, mirroring a broader sell-off in the cryptocurrency market.

What Happened: HBAR fell to a daily low of $0.2483 on Friday morning. The token price has ranged from a low of $0.247 and a high of $0.26 over the past 24 hours.

Bitcoin and Ethereum, the world’s two largest cryptocurrencies by market capitalization, also saw sell-offs on Friday. BTC traded down 3.3% to the $41,000 level and ETH fell 3.6% to $2,900.

The majority of the top 100 cryptocurrencies saw sell-offs on Friday, bringing the total cryptocurrency market capitalization to $3.24 trillion.

DeFi Impact: A key factor impacting Hedera is a decline in the total value locked, or TVL, within its decentralized finance ecosystem.

According to data from DeFi Llama, the total HBAR locked in DeFi protocols has dropped to 675 million tokens. The TVL reached a high of 1.35 billion tokens earlier in the year.

In U.S. dollar terms, the TVL on Hedera has fallen from a high of $209 million on Dec. 3 to $165 million at the time of writing.

The decline in TVL suggests investors are pulling capital from decentralized applications on Hedera, such as SaucerSwap, Bonzo Finance, and HbarSuite.

Capital flight from DeFi protocols on Hedera is part of a broader trend. Other major blockchain networks, including Cardano, Ethereum, and Solana, also saw capital outflows in recent days.

Investors historically flock to decentralized applications and protocols during periods of strength in the broader cryptocurrency market. In turn, capital tends to exit these applications during periods of weakness.

Hedera Outlook: Despite the near-term sell-off, Hedera Hashgraph has several bullish catalysts that could drive its price higher over the long term.

The network boasts partnerships with major global companies, including IBM and Google, both of which are members of Hedera’s governing council.

Hedera is also positioning itself as a key player in the Real World Asset tokenization industry. Tokenization refers to the process of converting illiquid assets into liquid ones that can be easily moved and traded.

Hedera’s fast transaction speeds and low transaction costs make it an attractive option for developers in this space.

Another potential catalyst for HBAR is the possibility of the Securities and Exchange Commission approving a spot HBAR exchange-traded fund in 2025.

According to a senior Bloomberg analyst, the SEC may approve the ETF since it does not classify HBAR as a security.

Chart View: HBAR is trading above the 50-day moving average on Friday.

The token also trades at the major pivot point of the Murrey Math Lines at $0.1953, which is a level of key support and resistance.

The daily chart of HBAR shows the token is forming a bullish falling wedge pattern, which typically forms as an asset consolidates between two falling trendlines. A bullish breakout often occurs when the two lines converge.

Additionally, HBAR is forming a bullish pennant pattern, which is characterized by a long upward trendline followed by consolidation. This pattern also often leads to a strong bullish breakout over time.

A contrarian case can be made for Hedera’s price. If the bullish patterns hold, HBAR could rebound and retest the year-to-date high of $0.3940, which would represent a potential gain of around 66% from the current price level.

However, the bullish outlook would be invalidated if HBAR trades down to the major S&R level at $0.20.