The Hedera network’s HBAR token has recently reached significant lows, revealing challenges not only within itself but also across the broader cryptocurrency landscape.
Following a steady drop through late fall, HBAR has settled into a narrow price range. Traders are currently evaluating whether this phase signifies a potential rebound or a continuation of the downward trend.
Activity in the market has surged around critical technical levels, even though indicators present a mixed fundamental outlook.
HBAR Experiences Significant Decline Amid Market Pressures
This week, HBAR saw a decline to approximately $0.11–$0.12, failing to maintain its position above the pivotal $0.125 support level, which had previously shown resilience. This drop correlated with a market-wide downturn, influenced by the performance of Bitcoin and other major cryptocurrencies ahead of critical global financial developments.
Data suggests that trading volume spiked notably during attempts to reclaim resistance near $0.119–$0.120, indicating a trend of selling rather than buying interest.
The current market structure appears increasingly bearish, as HBAR trades below significant moving averages. Momentum analysis through indicators like RSI signals a continuation of downward movement.
Additionally, on-chain metrics have reflected declining sentiment, with Hedera’s total value locked seeing a significant drop and the availability of stablecoins on the network shrinking.
Volume Trends Highlight Critical Market Levels
Despite the overarching negative trend, recent fluctuations in trading volume have attracted short-term investors. In a notable session, HBAR trading volume surged more than 80% above the daily average as prices tested resistance around $0.119.
This rejection prompted a selling wave, although late-session trading revealed renewed buying activity as the price moved toward the $0.112–$0.113 support area. This particular level is now identified as immediate support, while a psychological level at $0.10 could signal deeper downward movement if selling intensifies.
On the recovery side, $0.119–$0.122 is being watched closely as a key resistance band. A definitive break above this area could provide a pathway for HBAR to revisit prior highs near $0.13.
Expert Opinions Diverge on Future Price Movement
Certain technical analysts suggest that HBAR may be nearing oversold levels, citing diminishing bearish momentum and potential breakout signals on shorter timeframes. This has led to speculation about a bounceback aimed toward the mid-$0.12 to $0.14 range, contingent upon support holding firm.
Conversely, others exercise caution, pointing to a decrease in demand for investment products linked to Hedera and a slowdown in ecosystem development. From this perspective, a failure to maintain current levels might lead to a retest at the $0.10 level, reminiscent of earlier liquidation events.
Cover image from ChatGPT, HBARUSD chart sourced from TradingView.
