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Hedera (HBAR) is currently facing significant downward pressure, having lost 37% of its value over the past month amidst unfavorable market conditions.
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This persistent decline has positioned HBAR below the critical threshold of $0.30, raising concerns over its ability to regain bullish momentum.
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“If the current support at $0.177 fails, we could see HBAR plummet to around $0.125,” warned a market analyst from COINOTAG.
Hedera (HBAR) struggles below $0.30, risking further drops as market trends indicate bearish conditions. Key support at $0.177 is pivotal for future moves.
Hedera DMI Shows the Lack of Clear Direction
HBAR’s Directional Movement Index (DMI) reveals an Average Directional Index (ADX) currently sitting at 13.5, a drop from 17.4 observed the previous day. The ADX helps assess trend strength and, when below 20, indicates a generally weak market situation that lacks defined directional movement.
This decline in the ADX points toward a diminishing downtrend momentum for Hedera, suggesting the potential onset of consolidation or a sideways market rather than a continuation of aggressive declines.
HBAR DMI. Source: TradingView.
Furthermore, the positive Directional Indicator (+DI) stands at 18.2, down from 28.2 two days prior, while the negative Directional Indicator (-DI) has fallen to 20 from 31. The downward pressure on both indicators suggests that while selling pressure is steeping, buying interest has not materialized strongly enough to halt the decline.
Given that the -DI remains above the +DI, Hedera continues to be classified under a downtrend. However, the narrowing gap between the two hints that selling pressure could be reducing. A potential shift could occur if the +DI rises above the -DI, indicating a possible trend reversal.
HBAR Ichimoku Cloud Paints a Negative Picture
The Ichimoku Cloud analysis for HBAR presents a decidedly bearish outlook. The asset is trading beneath the red cloud (Kumo), which historically denotes an ongoing downtrend.
Moreover, the Tenkan-sen (blue line) is situated below the Kijun-sen (red line), reinforcing concerns about ongoing weakness in buyer interest. Attempts to break through the Kijun-sen have consistently failed, indicating significant resistance that further limits upward momentum.
HBAR Ichimoku Cloud. Source: TradingView.
The configuration for the Senkou Span A (green line) lying underneath the Senkou Span B (red line) hints that bearish conditions are expected to persist. The steep distance between HBAR’s price and the cloud further illustrates the prevailing bearish momentum. A decisive break above the Kijun-sen could shift this narrative.
Will Hedera Drop to $0.12 Soon?
The Exponential Moving Average (EMA) lines for HBAR are currently showing a bearish alignment, with short-term EMAs trailing below long-term ones. This configuration underscores prevailing downward momentum, with selling pressure taking precedence over buying.
Recently, HBAR has tested support at $0.177, a pivotal level that, if breached, could lead to further decreases towards $0.125, which would continue the supporting bearish trend.
HBAR Price Analysis. Source: TradingView.
If bullish momentum were to resurface, HBAR might attempt to reclaim resistance at $0.24. A breakthrough here would act as an indicator of a sentiment shift, potentially elevating prices to $0.32.
In an optimistic scenario, should the uptrend gain momentum, Hedera could feasibly approach $0.40, a noteworthy price point not seen since 2021. However, for this bullish turnaround to occur, a cross of short-term EMAs over long-term ones would need to take place, serving as a positive signal for buyers.
Until such a shift occurs, HBAR remains under significant pressure, with the crucial support level at $0.177 determining its short-term trajectory.
Conclusion
In summary, HBAR is navigating through challenging market conditions as it grapples with short-term bearish indicators and crucial support levels. The lack of clear directional momentum, coupled with bearish technical analysis from both the DMI and the Ichimoku Cloud, suggests that the asset may continue to face downward pressure. Investors should monitor critical support levels and volume trends closely, as these will be essential in determining HBAR’s next moves in this volatile landscape.
