HBAR has experienced a 7% decrease in value over the previous week, performing worse than the overall cryptocurrency market which has displayed slight signs of recovery.
Detailed analysis of the technical aspects reveals a gloomy outlook, with significant indicators indicating a potential continuation of the selling trend in the near term.
Examination of the one-day chart for HBAR/USD highlights that the Relative Strength Index (RSI) of the token remains below the neutral 50 mark and is on a downward trajectory, standing at 43.38 at the current moment.
The RSI is utilized as a momentum indicator to determine whether an asset is either overbought or oversold, ranging between 0 to 100. Readings exceeding 70 often indicate overbought conditions and a probable price correction, while values below 30 suggest oversold conditions and a potential rebound.
The RSI value for HBAR indicates a strengthening bearish momentum, implying an increase in selling pressure which diminishes the likelihood of a short-term recovery.
Moreover, the Balance of Power (BoP) indicator for HBAR currently sits at a negative -0.27, further confirming the bearish stance.
This indicator evaluates the balance between buyers and sellers by examining price movements within a specific timeframe. A negative BoP suggests seller dominance, heightening the possibility of continued downward pressure on HBAR's price in the immediate future.
HBAR is facing downwards pressure as it has slipped under a descending trend line, a bearish formation where the asset consistently achieves lower highs over time, connected by a declining straight line.
The persistence of the trend line reinforces the indication of HBAR being in a sustained downtrend, reflecting a pessimistic market sentiment where sellers surpass buyers gradually.
Continuation along this trajectory may drive HBAR’s price down to $0.12. On the contrary, a breakout above the descending trend line could push the HBAR token's price to $0.19.