HBAR eyes breakout as Grayscale Hedera Trust fuels fresh investor demand

HBAR price is gaining momentum as technical patterns and fresh ETF filings align, with traders eyeing a potential breakout toward $0.37 following Grayscale’s Hedera Trust registration.

After surging past a double bottom pattern with a neckline at $0.23, the HBAR price reached a high of $0.30 but was unable to break through that resistance on two separate occasions. The resulting pullback brought the HBAR price back toward the breakout zone, yet it managed to hold above the crucial $0.23 support level.

The HBAR price ever since this action has been consolidating within a bullish pennant formation which is  a classic continuation pattern that often signals further upside in strong trends. The narrowing price range reflects a period of indecision, but the broader technical picture remains positive.

The continues support to the upward narrative for the HBAR price has brought about bullish crossover between the 20day EMA and the 50day SMA. Additionally, trading volume has had a very significant contraction since the last pullback which aligns with the typical setup for a bullish pennant breakout.

Currently, today’s daily candle is testing the upper boundary of the pennant and with volume increasing by about 30% over the past 24 hours. This uptick in activity comes as the converging lines as the pennant approaches their apex, proposing that a breakout in the HBAR price could be imminent. Should there be a price break in the HBAR above the pennant, then the projected target based on the height of the flagpole will be around $0.37.

There remains a chance that the HBAR price could pull back within the pennant and continue consolidating towards the apex. However, as long as the lower trendline support holds, the bullish outlook for the HBAR price remains intact.

What’s Fueling the HBAR Price Rally?

Beyond the technical setup, the HBAR price is also benefiting from a significant fundamental catalyst. Two days ago, on August 12, Grayscale filed for the Hedera Trust ETF in Delaware, alongside a similar ETF for Cardano (ADA). These registrations are noteworthy, as they often precede official S-1 filings with the SEC, hinting at the potential launch of a regulated investment vehicle for HBAR. This news has added fresh momentum to the HBAR price.

Adding to the excitement, there is speculation that BlackRock may file for a Hedera ETF by Monday, further fueling optimism around the HBAR price.

In summary, the HBAR price is at a critical juncture with both technical and fundamental factors aligning for a possible breakout. This action will make traders and investors to watch closely to see if the HBAR price can capitalize on this momentum and reach new highs in the coming days.