Hedera (HBAR) witnessed a strong surge in December, reaching multiple price highs, but the cryptocurrency has recently experienced a downturn, falling more than 4% in the last 24 hours. Despite some indicators suggesting that a market correction may be nearing its end, a looming death cross threatens to deepen the decline, leaving investors on edge.
HBAR’s Struggling Downtrend
According to the Hedera Directional Movement Index (DMI), HBAR is currently experiencing a weak downtrend. The Average Directional Index (ADX) is at 18.2, signaling a lack of trend strength. The +DI (Directional Indicator) stands at 18.8, while the -DI is slightly higher at 19.3, indicating that bearish momentum remains dominant but not overpowering.
This suggests that while HBAR is in a downtrend, the market is still lacking a strong directional bias. The ADX reading below 20 indicates weak trend strength, which could suggest potential volatility or shifts in the market direction. Without significant movement from either side, HBAR could remain range-bound in the short term.
Ichimoku Cloud Signals Bearish Pressure
The Ichimoku Cloud chart paints a similarly bearish picture for HBAR. The price is currently positioned below the red cloud, which signifies bearish momentum. The Senkou Span A is below Senkou Span B, further indicating downward pressure. Additionally, the short-term Tenkan-sen line is below the longer-term Kijun-sen line, reinforcing the bearish sentiment.
The Chikou Span (lagging span) is also beneath the price action and the cloud, confirming the dominance of bearish conditions. This setup suggests that unless HBAR can break above the cloud, a bullish reversal remains unlikely.
Price Prediction: Will HBAR Test Key Support Levels?
Looking ahead, if the downtrend persists, HBAR may test the support level at $0.233. A critical factor to watch is the potential formation of a death cross, where the short-term moving average crosses below the long-term moving average, signaling increased bearish momentum. If HBAR fails to hold this support, it could drive the price lower.
On the other hand, if the trend reverses and the short-term moving averages cross above the long-term ones, HBAR could see a recovery. In such a scenario, the price might attempt to retest the resistance at $0.31, and a breakout above this level could open the door for further gains toward $0.33.
Also Read: HBAR Price Breakout Delayed: Will Hedera Hashgraph’s Struggle Continue into 2025?
With a fragile market sentiment, the next few days will be crucial for HBAR’s price action. Investors should keep a close eye on key technical levels to gauge the potential for either a bearish continuation or a bullish reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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