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Hedera (HBAR) was one of the top-performing cryptocurrencies in the final quarter of 2024, gaining significant attention with its upward momentum. Early in January 2025, there were signs that this positive trend could continue, but as the month draws to a close, HBAR has lost its bullish steam, putting the altcoin at risk of a notable decline.
The Bullish Outlook Falters
On January 16, HBAR rallied to $0.40, showing promising signs for the altcoin’s continued rise. However, shortly thereafter, the price consolidated between $0.35 and $0.37, leading to the formation of a bull flag on the 4-hour chart. A bull flag is a pattern that suggests a brief consolidation before an uptrend resumes. Unfortunately, on January 20, HBAR fell below the flag’s support line at $0.35, invalidating the bullish pattern and extending its downward movement to $0.32.
Indicators Signal Growing Selling Pressure
Analysis from the daily chart, including the Chaikin Money Flow (CMF), paints a concerning picture. The CMF, which measures accumulation and distribution, has dropped below the neutral zone, indicating fading buying pressure. This shift suggests that selling pressure is growing, and if the CMF continues to fall, HBAR’s price is likely to follow suit, potentially triggering further declines.
Price Prediction: 30% Decline Possible
The recent drop in HBAR’s price has pushed it below the critical 0.786 Fibonacci retracement level, a key resistance zone. This indicates that the altcoin’s ability to reverse the current downtrend is weakening. If selling pressure continues to rise, HBAR could experience a 30% correction, possibly testing the 0.50 Fibonacci level at $0.22.
However, all is not lost for HBAR. Speculation surrounding the potential inclusion of HBAR in Donald Trump’s crypto reserve, along with the approval of a spot ETF, could provide the catalyst for a rebound. If demand rises, HBAR could rally past $0.40, possibly reaching $1.
Also Read: Hedera (HBAR) Eyes 22% Surge Toward All-Time High: Key Factors to Watch
As it stands, the next few weeks will be critical in determining whether HBAR can reverse its current trend or if a deeper correction is imminent.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
