- Demand Zone Stability: The demand zone remains a strong area of interest with potential for a price reaction
- Liquidity Insights: Overhead liquidity could drive upward moves, challenging supply zones
- Risk Awareness: The market’s unpredictability underscores the need for break-even stops and adaptable strategies
In our previous analysis of Hedera Hashgraph (HBAR), we observed how the price left liquidity zones both above and below its current levels.
True to expectation, the price dipped slightly to absorb some of the liquidity below, reacting within that zone.
But what happened next? More liquidity was left in its wake.
HBAR’s Current Landscape
Above the current price, a significant amount of liquidity remains untouched. Below, the demand zone we identified continues to hold firm. This demand zone is still a valid area to monitor, but caution is necessary due to the accumulation of liquidity both above and below.
The supply zones we’ve outlined in our analysis are critical to watch. However, if you’re trading within these zones, consider securing your positions with break-even stops.
With such a concentration of liquidity overhead, there’s a strong possibility the price could breach these supplies, invalidating them as key resistance levels.
What Could Happen Next?
Predicting HBAR’s price movements with absolute certainty is impossible, as the market remains inherently unpredictable. Here’s what we’re monitoring:
- Scenario 1: Liquidity Grab Below
If the price visits the demand zone below, it might absorb additional liquidity in that area before attempting another upward move. - Scenario 2: Breakout Above
The overhead liquidity could act as a magnet, pulling the price upward to test or breach the supply zones. - Unpredictable Moves
While these scenarios are possible, the market’s behavior might deviate entirely, underscoring the importance of risk management and flexibility in trading strategies.
Final Thoughts
HBAR’s current setup highlights the delicate balance between demand and supply zones, compounded by significant liquidity pools.
While we’ve outlined potential scenarios, remember that no prediction is 100% guaranteed. Stay vigilant, adapt to market shifts, and always manage your risk effectively.
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. Â Read more
