Hedera (HBAR) has surged an astonishing 220.70% in the past 30 days, positioning itself among the top-performing cryptocurrencies in the top 20 by market cap, which currently stands at $10.89 billion. However, technical indicators now signal a possible cooling off in the rally, as momentum appears to be fading.
Weak Momentum Evident in DMI and ADX
The Directional Movement Index (DMI) reflects a slight bullish bias, with D+ (23) above D- (18.2). However, the Average Directional Index (ADX), which measures trend strength, has dropped to 14.2, well below the 25 threshold that indicates a strong trend. This steep decline from its December 3 peak of 65 suggests the once-robust uptrend is losing steam.
Such a weak ADX reading points to range-bound trading or a potential bearish shift in the short term, as the rally struggles to sustain its earlier momentum.
Ichimoku Cloud Signals Bearish Pressure
The Ichimoku Cloud further underscores a bearish outlook. HBAR’s price is currently below the cloud and key Ichimoku lines, with the blue Tenkan-sen (conversion line) recently crossing below the red Kijun-sen (baseline) in a bearish signal. This setup confirms downward momentum, with strong resistance overhead.
The cloud’s considerable thickness reflects significant selling pressure, requiring a substantial effort from bulls to reclaim lost ground.
EMA Lines and Key Support Levels
The Exponential Moving Average (EMA) lines also point to caution, with the shortest-term EMA nearing a potential “death cross,” where it crosses below the longer-term EMA. Such a pattern could further pressure HBAR to maintain critical support at $0.275.
Should this level fail, the next key support lies at $0.23, with a possible drop to $0.17 if bearish momentum continues. Conversely, a recovery could see HBAR challenge resistance at $0.33. Breaking this barrier may open the door to $0.40, but such a reversal would require renewed optimism and significant buying volume.
Outlook
As Hedera’s rally faces headwinds, traders should monitor key support and resistance levels closely. While a bullish reversal remains possible, current indicators favor caution, with consolidation or further downside likely in the near term.
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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