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HBAR has recently plunged to a two-month low, yet traders maintain confidence, supported by positive funding rates that underscore optimism for a rebound.
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The Relative Strength Index (RSI) hints at a potential recovery, suggesting that HBAR might reverse its downtrend if critical support levels hold firm.
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According to COINOTAG insights, HBAR must secure $0.154 and $0.163 as key support levels to sustain a recovery; failure to do so could lead to a drop toward $0.139, negating bullish prospects.
HBAR hits a two-month low amid market pressures, but positive funding rates and RSI signals indicate potential recovery if key supports hold.
HBAR Traders Remain Bullish Despite Price Decline
Despite HBAR’s recent price dip to a two-month low, the funding rate data reveals sustained trader confidence. The funding rate has remained predominantly positive, with only a brief negative episode, reflecting a market consensus that HBAR holds recovery potential. This persistent bullish sentiment is a critical factor, as it encourages traders to maintain or increase their positions, anticipating a price rebound.
Such optimism is vital in navigating the current market turbulence. Traders’ willingness to stay invested suggests that the recent downtrend may be temporary, and a price reversal could be imminent if this sentiment continues to strengthen.
HBAR Funding Rate. Source: Coinglass
Technical Indicators Signal Possible Reversal
The Relative Strength Index (RSI) for HBAR recently dipped into bearish territory but is now showing promising signs of a rebound. This movement aligns with typical market corrections where oversold conditions often precede a recovery. If the RSI continues to improve, it may signal that the selling pressure is easing, setting the stage for a potential upward price movement.
Historically, similar RSI patterns observed in early April corresponded with a notable price bounce, reinforcing the indicator’s reliability. Monitoring the RSI closely will be essential for traders seeking confirmation of a trend reversal.
HBAR RSI. Source: TradingView
Critical Support Levels Define HBAR’s Recovery Path
Currently trading at approximately $0.151, HBAR has experienced a 15.8% decline over the past week and remains below the resistance threshold of $0.154. The token’s ability to break free from this resistance and establish $0.154 and $0.163 as support levels will be pivotal for its recovery trajectory.
Securing these support points would indicate that the downtrend is losing momentum and could catalyze further gains. Conversely, failure to hold these levels might expose HBAR to additional downside risks.
HBAR Price Analysis. Source: TradingView
Potential Risks and Market Implications
External factors such as escalating geopolitical tensions or adverse broader market conditions could exacerbate HBAR’s price decline. A breach below the critical $0.145 support level may trigger a further drop to $0.139, which would invalidate the current bullish outlook and potentially shift market sentiment toward bearishness.
Such a scenario would necessitate cautious trading strategies and could lead to increased volatility as investors reassess their positions.
Conclusion
HBAR’s recent price decline to a two-month low has tested trader confidence, yet positive funding rates and RSI indicators suggest a possible recovery if key support levels at $0.154 and $0.163 are maintained. Traders should closely monitor these technical benchmarks alongside broader market conditions to gauge HBAR’s next moves. Maintaining these supports is crucial for reversing the downtrend and sustaining bullish momentum in the near term.
