Hedera (HBAR) has experienced an impressive surge of 8% on Friday, extending its seven-day gains to 21.7%. This rally comes amid strong momentum signals, including a significant rise in the BBTrend indicator and the Relative Strength Index (RSI) entering overbought territory. The price is now nearing a key resistance zone, and with bullish exponential moving average (EMA) alignment, it suggests that Hedera may have further room to continue its uptrend.

Hedera’s BBTrend Indicator Soars

One of the key signals driving Hedera’s price action is the sharp rise in the BBTrend indicator. This metric, based on Bollinger Bands, measures the strength and direction of a trend. In just two days, the BBTrend value surged from 1.5 to an impressive 6.83. Such a drastic increase signals a significant rise in volatility and momentum, suggesting that Hedera could be at the beginning of a strong bullish breakout.

BBTrend values above 3 generally indicate the emergence of a strong trend. As of now, with the indicator at 6.83, Hedera is in the midst of expanding volatility and moving away from its recent range. While the BBTrend itself doesn’t dictate the direction, its rise, when combined with other positive signals like increasing price or volume, confirms that Hedera may be transitioning into a sustained uptrend.

Traders will closely monitor whether this momentum persists or fades. If the momentum continues, Hedera could continue its bullish trend; however, a reversal from such elevated BBTrend levels could lead to sharp pullbacks.

RSI Enters Overbought Zone

Alongside the BBTrend surge, Hedera’s RSI has also climbed rapidly from 52.49 to 73.93. The RSI is a momentum oscillator that measures the magnitude of recent price changes, with values above 70 typically indicating that an asset is overbought. When an asset enters overbought territory, as Hedera has, it often signals that the asset may be overheating in the short term, potentially leading to a cooldown or consolidation.

While an overbought RSI confirms strong buying momentum, it also suggests that buyers could be nearing exhaustion. If the price continues its rise without pausing, the risk of a pullback increases. On the other hand, sustained overbought conditions can persist during strong uptrends, so traders will watch closely for continued strength or signs of a reversal.

Resistance and Support Levels

In terms of price levels, Hedera is approaching a key resistance zone at $0.20. This level has acted as a ceiling in recent sessions, and a breakout above this resistance could set the stage for further gains. If the price breaks through $0.20, the next resistance levels to watch are $0.227 and $0.258. A strong continuation of the uptrend could even send HBAR as high as $0.287, its first break above $0.28 since February 1.

However, traders should also keep an eye on the downside. If the price fails to hold above the critical support at $0.179, a deeper pullback could be triggered. In such a case, Hedera could slide to $0.16 or possibly $0.152, which have acted as previous support zones. If bearish momentum accelerates, a drop toward $0.124 is also a possibility, making current levels crucial for short-term direction.

Conclusion

Hedera (HBAR) is experiencing a bullish surge driven by rising momentum indicators and increasing volatility, as seen through its BBTrend and RSI. With the price approaching key resistance levels, the next few days will be critical in determining whether Hedera can sustain its upward momentum. Traders should closely monitor support and resistance zones to gauge potential breakout or reversal. As always, while the bullish momentum is strong, caution is advised, as the asset is in overbought territory, and any failure to hold key support levels could lead to a sharp pullback.