Hedera Price Prediction: HBAR Correction Cycle Ends, $0.40 Rally?

Accumulation Phase Sets Stage for Next HBAR Upswing

Hedera (HBAR) could be entering a key accumulation period, and analysts believe the crypto may have reached the end of its multi-year correction cycle. Similar to what we have seen with previous structures that preceded significant rallies, the asset is currently showing price action that is reminiscent of structures that preceded significant rallies of the past. If we continue to follow market cycles from the past, we could see a rebound to the previous highs in the range of $0.35-$0.40 in the coming months.

Analyst STEPH IS CRYPTO pointed out that the pattern for HBAR has been very cyclic, with strong drawdowns followed by brutal recoveries. Historically, every market cycle has seen declines of -77% to -93% before hitting a bottom and reversing higher. The recent consolidation between the $0.17-$0.19 zones is indicative of the token creating another base, as seen during previous bottoms. Distribution is followed by consolidation before paving the way to accumulation phases that are usually followed by bullish continuation.

HBARUSD 1W CHART | SOURCE: X

Additionally, the chart shows the development of a "bottom wick" pattern, which indicates an early sign of renewed demand at lower levels. This technical configuration has historically caused explosive moves in Hedera, like the 3,170% rally after the 2020 market bottom.

If buying pressure keeps on accumulating near this support zone, the current configuration could indicate the beginning of another long-term uptrend. As highlighted by the analyst, Hedera is cyclical, and therefore, sometimes patience during accumulation phases could lead to outsized gains.

Hedera Price Strengthens Through Partnerships

Besides chart structures, the HBAR ecosystem remains resilient with strategic partnerships and enterprise integrations. Its credibility and sustainability are reinforced by its leadership council, which comprises the world's leading technology giants, financial institutions, and manufacturing enterprises. This institutional participation offers stability and also increases users' willingness to take part in the network, further appreciating the overall value.

Furthermore, with the development of decentralized applications and tokenization projects, on-chain utility is enhanced through developer activity. These developments contribute to an increase in volumes of transactions and network-based adoption, which in the past have historically been associated with prolonged price recovery.

If support holds, Hedera could begin an uptrend to its past resistance near $0.35. On the other hand, if support is not maintained, the recovery could be delayed, leaving the asset in a prolonged accumulation.