The HBAR price has pulled back and entered a bear market after falling by 30% from its year-to-date high.
Summary
- Hedera price is in the second phase of the Elliot Wave pattern on the daily chart.
- HBAR has also formed a bullish flag chart pattern on the daily chart.
- The coin will benefit from the ongoing Hedera stablecoin growth.
HBAR price Elliot Wave analysis
Hedera (HBAR) token dropped to $0.2147, with its volume and futures open interest falling to $193 million and $357 million, respectively.
Technical analysis suggests an eventual rebound in the HBAR price. A closer look shows that it rose from a low of $0.1265 on June 22 to a high of $0.3047 on July 27. This surge was the first phase of the Elliot Wave pattern.
The Hedera price has now entered the second phase, characterized by a pullback that is between a 50% and 61.8% retracement of the first phase.
This phase is then followed by the third wave, which is usually the longest. In this case, it may jump to last year’s high of $0.40, which is about 85% above the current level.
The coin has formed other positive chart patterns. For example, it has formed a bullish flag pattern, which is characterized by a vertical line and a descending channel. This pattern resembles a hoisted flag, and it often leads to a strong bullish breakout.
Hedera Hashgraph price also remains above the 100-day Exponential Moving Average. That is a sign that bulls remain in control despite the recent pullback.
Hedera stablecoin growth and ETF approval
A potential catalyst for the HBAR price is the ongoing rebound of stablecoin supply. Data compiled by DeFi Llama shows that the USDC supply increased by $45 million over the last seven days. This rebound has brought its total supply to over $115 million.
Stablecoins are a crucial component of any layer-1 or layer-2 network, particularly following the signing of the GENIUS Act. This growth explains why Justin Sun’s Tron has become one of the biggest and most profitable networks in the crypto industry.
The other potential catalyst for the HBAR price is that the Securities and Exchange Commission is considering multiple ETFs. An HBAR ETF is likely to boost the price due to rising demand from American investors.
