How Hedera [HBAR] bulls can capitalize on this pattern’s breach

• After rebounding from the $0.06 support, HBAR broke out of its bearish pattern on the daily chart
• HBAR’s long/short ratio indicated a slight bullish edge

Hedera’s [HBAR] recent reversal from the $0.06 support level set the stage for the bulls to end their bearish rally. As a result, the altcoin finally broke out of its bearish pattern. It saw a few green candles on its daily chart over the past week as it attempted to break above its near-term EMAs.

Could the bulls provoke another rally from the $0.06 support level if the sellers cause a near-term pullback? At the time of writing, HBAR was trading at around $0.0722.

Can HBAR buyers provoke a bull run?

From a relatively long-term perspective, HBAR was on a consistent uptrend after jumping above its 200-day EMA (green) in October 2023. The altcoin kept marking higher troughs and highs and grew by over 164% in the next five months after that.

However, after losing the crucial $0.09 resistance (then support) level on the daily chart, HBAR registered a steep downtrend. As a result, it fell by over 23% over the past month.

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After witnessing an increasingly bearish edge, it fell below its crucial 200-day EMA and formed a descending channel during this downtrend.

The recent buying resurgence from the $0.06 support level helped the buyers break the streak of red candles. Bulls provoked a 20% rally in four days, but the 50-day EMA (yellow) remains a strong hurdle.

Nonetheless, this resulted in a descending channel breakout, which can set the stage for buyers to provoke a near-term rally.

Should the bears retest the $0.06 level again, buyers will likely provoke an uptrend and aim to cross above the near-term EMAs. In this case, buyers would look to test the $0.088 level near the 200-day EMA.

A decline below the $0.06 support can significantly delay any near-term recovery attempts. Here, sellers would aim to pull the price towards the $0.05 level before a likely reversal.

Interestingly, the Awesome Oscillator marked two subsequent higher peaks, with another peak aiming to find a spot above the ‘0’ level. A sustained uptrend on this indicator can confirm bullish twin peaks, reaffirming our bullish bias.

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However, at press time, the RSI had fallen below the 50 level and was yet to confirm a bullish edge. A hidden bearish divergence on this indicator will reveal a bearish edge.

HBAR in a critical spot

Source: Coinglass

According to Coinglass data, the 24-hour Long/Short Ratio had a reading of 0.8515. This indicated a higher proportion of short positions, compared to long positions. However, the HBAR/USDT long/short ratio on Binance significantly highlighted a bullish edge, standing at 2.1.

Finally, most altcoins share a strong correlation with Bitcoin. So, it’s crucial to consider Bitcoin’s movements and assess the overall sentiment before making a buying decision.