-
Hedera (HBAR) is facing significant bearish pressure as it trades below the critical $0.20 mark, having slipped over 5% in the past week.
-
Technical indications from DMI and Ichimoku Cloud suggest a growing bearish sentiment, with sellers gaining traction while buyers attempt to defend key support levels.
-
“If HBAR fails to hold the $0.184 level, it could potentially plunge below $0.17, while a breakout above $0.195 might signal a bullish shift,” reports COINOTAG.
This article explores the current bearish trend of Hedera (HBAR), examining technical indicators and critical support levels that could influence its trajectory.
The Bearish Trend of Hedera: Analyzing Recent Developments
Hedera (HBAR) has persistently traded below the $0.20 threshold, indicating a challenging market environment for this cryptocurrency. Over the past week, the downtrend has made it increasingly difficult for investors to find optimism in the asset’s price action.
Recent data points from the Directional Movement Index (DMI) and the Ichimoku Cloud further illuminate the prevailing market conditions, revealing that the token is under considerable bearish pressure. This situation prompts investors to reconsider their positions and strategies.
DMI Indicates Weakening Buying Strength Amidst Growing Selling Pressure
The Hedera ADX, a tool for measuring trend strength, has climbed to 16.15, slightly up from 11.5 yesterday, suggesting a slow but noticeable rise in trend momentum. Earlier today, it peaked at 17.16, hinting at an evolving trend despite remaining below the critical threshold of 20.
However, the details paint a more complicated picture: while the bullish pressure tracked by the +DI line has declined from 26.95 to 20.27, the bearish pressure reflected by the -DI line has risen from 13.97 to 16.65. This suggests that while buyers have not completely surrendered control, sellers are becoming increasingly aggressive.
Source: TradingView
With the ADX still hovering below 20, the overall trend is classified as weak; however, a gradual change in buyers and sellers’ dynamics indicates potential volatility ahead. A failure for buyers to regain strength could see HBAR continuing its downward trajectory.
Ichimoku Cloud Analysis Reveals Bearish Setup for HBAR
The Ichimoku Cloud setup for Hedera indicates a significant bearish trend, as the price consistently remains beneath the cloud. This lack of bullish momentum indicates market indecision, further complicating the landscape for investors.
Currently, HBAR is trading below both the Tenkan-sen (conversion line) and Kijun-sen (base line), reinforcing the resistance posed by the cloud ahead. With a substantial red cloud reflecting significant overhead resistance, the market faces challenges breaking beyond this barrier if bullish momentum does not strengthen.
Source: TradingView
By employing the Ichimoku Cloud system, traders gain insights into not only price trends but also critical support and resistance levels. As long as the price remains beneath the Ichimoku Cloud, the bearish momentum is likely to persist in the short term.
Will HBAR Drop Below $0.17 Soon?
Currently, HBAR is fluctuating within a narrow range, testing key resistance at $0.195 and critical support at $0.184. If the price approaches this support level and fails to hold, there is a substantial risk that HBAR could plummet to approximately $0.178.
Source: TradingView
A breach of the $0.178 level could pave the way for further decline, potentially driving the price beneath the pivotal $0.17 mark. Conversely, if HBAR manages to reverse its current path, overcoming the $0.195 resistance would be crucial for shifting bullish momentum.
Conclusion
Presently, HBAR faces a precarious balance between support and resistance levels. With bearish signals dominating the technical landscape, the focus is on whether buying pressure can counteract the selling trend. A pivotal moment lies ahead; investors must stay vigilant as market dynamics evolve, particularly in trying to hold above the crucial $0.184 support level.
