Hedera's Bullish Signals Weakening - Possibility of HBAR Price Drop Deepening
Hedera's HBAR token is currently up by 5% over the past week but has taken a hit of nearly 4.5% in the last 24 hours, with trading volume slipping 25% to $241 million. But worry not, despite this minor setback, multiple indicators hint that this drop might just be a temporary hiccup. For instance, a sharp decline in BBTrend and a falling RSI that's approaching oversold territory are signs of weakening momentum, but they don’t necessarily mean it's time to panic.
Price action for HBAR is caught in a tight battle between support and resistance levels, with EMA lines still maintaining a bullish structure, albeit with short-term averages starting to curve downwards. Whether HBAR sinks lower or snake its way back up will mostly depend on its response in the $0.191-$0.202 range in the coming sessions.
A Cooling HBAR Trend as BBTrend Tumbles Below 6
Hedera's BBTrend has taken a nose-dive, dropping to 5.95 from a high of 16.48 just three days ago. What does this mean? Well, it suggests that the bullish momentum behind HBAR may be cooling off somewhat. A plunging BBTrend often signals periods of consolidation or even reversal, especially when combined with signs of diminishing volatility or volume.
The BBTrend indicator measures the strength of a price trend by calculating the distance between the price and Bollinger Bands-volatility-based envelopes plotted above and below a moving average. When BBTrend values rise, it usually means the distance between the price and Bollinger Bands is growing, symbolizing an increase in trend strength. Conversely, a falling BBTrend (like HBAR's current reading of 5.95) indicates that the trend is losing steam. Continued declines in this value could imply a sideways or corrective phase, unless fresh momentum surfaces.
Hedera’s Momentum Dwindles as RSI Plummets Below 40
HBAR's RSI has taken a hefty dive to 39.75, down from a recent high of 82.53 just five days ago and a staggering drop from 59.88 two days ago. This steep decline reflects a rapid loss of bullish momentum and a shift in sentiment, with traders apparently pausing their buying stint following an overbought phase. As a result, the asset's RSI now hovers precariously above the oversold threshold, indicating that bearish pressure has been steadily building over the past week.
The Relative Strength Index (RSI) is a momentum oscillator that ranges from 0 to 100 and is employed to determine whether an asset is overbought or oversold. Readings above 70 are typically a signal of overbought conditions and potential corrections, while values below 30 indicate oversold territory and a possible rebound. With HBAR's RSI now at 39.75, the asset's teetering on the brink of oversold territory but hasn't crossed it yet. If the RSI continues to slide further, it could point to more downside, but if buyers return the fray, it could trigger a technical rebound.
HBAR's Killer Move: Breakout or Breakdown at Key $0.191-$0.202 Zone
Currently, HBAR is tussling between key support and resistance levels, with resistance at $0.202 and support at $0.191. EMA lines still show a bullish setup, with short-term averages positioned above longer-term ones, indicating that the broader trend remains intact. However, short-term EMAs are beginning to slope downward, increasing the risk of a potential death cross-a bearish crossover that could confirm deeper downside.
If HBAR fails to hold the $0.191 support, it might slide further towards $0.169 and potentially $0.153 if selling pressure intensifies. Conversely, if the $0.191 support level holds up and buyers make a reappearance, HBAR could test the $0.202 resistance again. A breakout above that zone may spark a bullish continuation, with upside targets at $0.215 and $0.228. If momentum remains robust, HBAR could challenge $0.258, marking its first break above the $0.25 level since early March.
- Despite a 4.5% drop in the last 24 hours, the Hedera's HBAR token's 5% increase over the past week suggests it might be experiencing a temporary hiccup.
- The falling RSI, approaching oversold territory, and the declining BBTrend indicate weakening momentum for HBAR, but they don't necessarily imply a panic sell-off.
- The price action for HBAR is caught in a battle between support and resistance levels, with EMA lines maintaining a bullish structure, although short-term averages are starting to curve downwards.
- A plunging BBTrend suggests the bullish momentum behind HBAR might be cooling off, which often signals periods of consolidation or even reversal.
- The key support and resistance levels for HBAR are $0.191 and $0.202 respectively, and the asset's response in this range will largely determine whether it sinks lower or bounces back up in the coming sessions.
