Hedera (HBAR) has seen a significant drop in price recently, falling by over 13% in the past 24 hours and 19% within the week. This downturn has resulted in HBAR's market cap sliding to $9 billion, slipping below the crucial $10 billion mark.
Technical indicators, such as the rising ADX and a bearish Ichimoku Cloud setup, validate the strengthening downtrend. The formation of a recent death cross on its EMA lines poses challenges for HBAR as it approaches critical support levels. Any potential recovery will require breaking key resistances to shift the current bearish momentum.
Hedera's ADX Indicates Strong Downtrend
Hedera's Average Directional Index (ADX) has surged to 43.3 from 11.4 just three days ago, indicating an intensified trend strength for HBAR. This uptick in ADX underscores the growing momentum in the ongoing downtrend, reflecting the prevailing bearish sentiment.
The ADX scale ranges from 0 to 100, with readings below 20 suggesting a weak trend and values above 25 signaling a strengthening one. With HBAR's ADX now at 43.3, the downtrend appears to be gaining traction, potentially leading to further downside pressure unless a notable shift in buying activity occurs.
The Ichimoku Cloud on HBAR's chart exhibits a bearish trend with the price trading below the cloud, signaling a downtrend. The cloud's red color indicates an expected continuation of bearish momentum. The Tenkan-sen positioned below the Kijun-sen reinforces the short-term bearish trend, while the Chikou Span below the price action affirms the overall downward bias.
To reverse the bearish trend, a breakthrough above the cloud is crucial for HBAR. However, with the future cloud forecasted to remain bearish and no strong signs of reversal visible, further downside is probable. Unless there is a significant push above the cloud, the current Ichimoku Cloud setup favors continued downward movement.
HBAR Price Forecast: Can Hedera Drop Below $0.1 In February?
HBAR's recent price movements reflect a bearish trend, indicated by a death cross formation in its EMA lines over the last two days. This bearish signal suggests a potential extension of the downtrend unless there is a shift in market sentiment. If selling pressure persists, HBAR may target the next crucial support at $0.125, potentially paving the way for further decline towards $0.053.
On the flip side, reclaiming $0.25 as a support level could signal a reversal for HBAR, with a breakthrough suggesting a move towards $0.29 and beyond. However, sustained buying pressure and a reversal in trend indicators are required for this scenario to unfold, as the current setup leans towards downside momentum.