Hedera HBAR, the native cryptocurrency of the Hedera public network, has seen its price decline 3.52% over the past hour to $0.05314, according to data analyzed on August 30, 2023. Though short-term traders may see this as an opportunity to take profits or exit positions, the broader technical picture suggests HBAR may be positioning for a bullish breakout in the coming months.

With a market capitalization of $1.8 billion, HBAR is the 37th largest cryptocurrency as of writing. Over the past 24 hours, $83.52 million worth of HBAR has traded hands, indicating decent liquidity. Zooming out, HBAR has declined 9.60% over the past week, though it remains basically flat over the past month at -0.93%.

The 6-month chart paints a clearer picture of HBAR's potential reversal. Since mid-February of this year, HBAR has declined over 23% amid broader risk-off sentiment in financial markets. However, in recent weeks HBAR appears to have established a bottom around the $0.05 level. This also coincides with its multi-month support level established in mid-2022.

With HBAR holding support and building a base, technical analysts will be looking for a breakout above resistance around $0.06. This would lead HBAR to test its next resistance around $0.07, representing a 30% move from current levels.

Is Hedera Setting Up for a Trend Reversal?

When looking at the multi-month chart, HBAR appears to be consolidating after its steep sell-off and may be setting up for a trend change. The cryptocurrency has established a reliable floor around $0.05 over the past two months, refusing to break down despite broad market weakness.

In addition, trading volume has trended lower during this consolidation period. This signals that sellers are becoming exhausted and a bottom is forming. The bulls have continually bought dips around $0.05, underpinning this key support level.

With HBAR appearing oversold from a momentum standpoint, the stage may be set for a rally once buying pressure returns to the market. The first test for bulls will be breaking above short-term resistance around $0.06. Beyond that level, HBAR would face upside targets around $0.07 and $0.08, representing the highs of 2022.

A move above $0.08 would turn the longer-term trend positive, with bulls likely setting their sights on a return to all-time highs around $0.50. While current market conditions remain challenging, HBAR appears to be one of the stronger major altcoins from a technical perspective.

What's the HBAR Price Prediction for 2023?

Given HBAR's technical setup and assuming broader risk asset sentiment improves, a reasonable price target for the end of 2023 looks to be around $0.10.

This target is derived from a breakout above the key resistance zone of $0.06 to $0.08, which would open the door for additional upside. Given crypto's inherently volatile nature, a 100% return from current levels is reasonable once momentum turns positive.

In addition, progress on enterprise adoption and real-world usage of the Hedera network would provide fundamental support for the cryptocurrency. As more applications are built on Hedera, this will drive long-term demand for HBAR.

Of course, risks remain tilted to the downside in the near term. If equities revisit their 2022 lows, HBAR would likely breakdown from its $0.05 support zone. In that scenario, prices below $0.04 come into play. However, if HBAR can continue holding its ground, odds appear to favor an eventual breakout and move back up toward $0.10.

In Summary

HBAR's multi-month technical picture suggests the cryptocurrency is consolidating and attempting to form a bottom after its steep 2022 decline. With a strong floor around $0.05, bulls have continually defended this area, signaling waning seller momentum.

If HBAR can gain upside traction and break above short-term resistance, its technical setup supports a rally back toward $0.10 within the next 6 to 12 months. However, patience and discipline will be key, as broad market headwinds could lead to retests of support around $0.05.

Overall, HBAR stands out as a relatively stronger major altcoin versus peers like BNB, XRP, and ADA. For prudent crypto investors and traders, building exposure below $0.05 may prove to be an opportunistic long-term entry point.