Hedera (HBAR) is currently grappling with fluctuating sentiment among traders, signaling uncertainty about the coin’s future price movement. The funding rate for HBAR traders has been swinging between long and short contracts, indicating indecision and volatility. This back-and-forth between market positions is creating instability, potentially leading to negative price action as traders react to each new position shift.
Such frequent sentiment shifts are often detrimental to price stability. With traders unsure about HBAR’s trajectory, the uncertainty could lead to increased volatility, putting downward pressure on its price. This presents a challenging environment for investors looking for clear direction.
Technically, the macro momentum for HBAR looks bearish. One key indicator, the Relative Strength Index (RSI), is nearing the oversold zone, typically signaling that the asset may be undervalued. Historically, when the RSI drops below 30, it often precedes a price reversal, setting the stage for a potential recovery. While the RSI suggests further bearish momentum, it has also been a reliable indicator of a potential rebound when in the oversold region.
Over the past 48 hours, HBAR has lost 8% of its value, breaking below its recent consolidation range and now trading at $0.208. This downward movement raises the possibility of additional losses in the short term. To avoid further declines, HBAR needs to find a strong support level. A potential dip below $0.200 could test the critical $0.182 support, pushing the RSI into the oversold zone and setting up a potential recovery.
If HBAR can stabilize at $0.225, it could avoid significant losses and work its way toward resistance at $0.250. Holding $0.225 as support would be a bullish signal, offering a glimmer of hope for a reversal and future price gains.
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.
Also Read: HBAR Price Analysis: Is Hedera’s Downtrend Losing Strength or Poised for a Reversal?
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