- Buyer Strength: Recent impulses suggest buyers are currently stronger than sellers, with potential for price increases
- Key Demand Zone: A critical demand zone could spark a bullish reaction, targeting liquidity left above current levels
- Market Risks: Holiday volumes are lower, making trades riskier and requiring cautious strategies
In our last analysis, we outlined two potential scenarios for HBAR’s price movement, and both predictions played out exactly as anticipated.
The price first reacted to a supply zone.
Then surged upward to capture the liquidity left above.
Now that these moves have unfolded, let’s assess what could come next for HBAR.
Buyers Gaining Strength Over Sellers
One noticeable trend is the strength of buyers compared to sellers. The last upward impulse was sharp and strong, whereas the current retracement is moving much more slowly.
This contrast indicates that buyers are in control of the market for now.
Key Demand Zone to Watch
There’s a demand zone forming that looks particularly interesting as a potential reaction point for HBAR. Why does this demand stand out?
- Liquidity Grab Before the Rally: Before the previous impulse upward, the price dipped lower to grab liquidity, showing the area’s significance.
- Nearby Liquidity: There’s still untapped liquidity close to this demand zone, making it a magnet for price action.
If the price reaches this demand and reacts positively, we could see a rally targeting the liquidity above.
Target for Buyers
The main objective for bulls? The liquidity left above. This area could act as a magnet for the price if buyers maintain their current momentum.
Holiday Trading Risks
It’s worth noting that today is the first day of the year, and market volume is relatively low. This lower liquidity environment can make trades riskier, as price movements may become more erratic or less predictable.
The Market’s Unpredictability
As always, no analysis guarantees certainty. While the outlined scenarios are possible, the market is notorious for its ability to surprise us. Price movements can deviate from predictions and follow an entirely unexpected path.
Conclusion
For now, the focus should remain on the demand zone below and the liquidity above as key levels to watch. Patience and proper risk management are critical, especially in a low-volume market environment.
What’s your take on HBAR’s current structure? Are you leaning bullish or bearish?
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
