Like many other cryptocurrencies, Hedera experienced a strong start to the year, only to enter a cooling-off period—a natural and expected development from an objective market standpoint. The re-election of Donald Trump as President of the United States acted as a strong fundamental catalyst, fueling multiple price surges across key assets.

Given this rally, a correction phase was anticipated, and signs now suggest that it may be nearing its conclusion. But what key parameters confirm this shift? Let’s take a closer look.

Daily time frame analysis

HBARUSD - 1 Day Time Frame

As we have emphasized many times, price corrections typically target the 0.5 Fibonacci level of the preceding impulsive movement. The logic behind this is straightforward—the market recognizes this level as a psychological boundary between the Premium and Discount zones.

When the price enters the Discount zone, it creates an opportunity for institutional participants to accumulate assets at a lower price, rather than buying at previous highs.

However, for retail traders and investors, simply waiting for a correction into the Discount zone is not sufficient to justify entering a trade. This level serves primarily as an analytical reference point, rather than a direct trading signal.

HBAR price target

Analyzing the attached chart, a strong impulsive price movement is evident, marked by a blue support zone. This zone serves as a key confirmation level for buy positions, as it defines a critical support area that must hold for bullish momentum to continue.

The condition is clear: as long as the price remains above this support zone on the daily timeframe, buy positions remain relatively valid. To manage risk effectively, traders could place a Stop Loss order below the internal low, providing protection against potential downside movements.

Additionally, a well-structured trade requires clearly defined profit-taking levels. In this scenario, profits could be secured incrementally at Buy-Side Liquidity levels, ensuring that gains are locked in while still allowing the position to benefit from further upside potential.