Hedera’s native token, HBAR, has experienced a noticeable drop in value as it failed to surpass the $0.40 resistance level. The altcoin has retreated to $0.25, leading to uncertainty among traders.

While this decline may indicate a bearish sentiment in the short term, the overall market outlook remains optimistic. To regain momentum, HBAR needs to address the growing caution among investors.

The current apprehension among traders is evident in the Futures market with Open Interest declining from $367 million to $216 million in just three days. This shift hints at a move towards bearish sentiment as traders exit leveraged positions, suggesting a lack of confidence in an immediate recovery.

Technically, HBAR’s macro momentum shows a strengthening bearish trend, with the Relative Strength Index hitting a three-month low. Sellers seem to be gaining control, posing challenges for bullish movements.

Despite the short-term challenges, HBAR is forming a macro bull flag pattern, potentially indicating a significant uptrend if it breaks through the $0.40 resistance level. However, the likelihood of an immediate breakout is low, with a breach of $0.40 being essential for a potential rally towards $0.47.

Failure to surpass $0.40 could lead to consolidation within the $0.25 to $0.40 range, with a possible decline towards $0.18 if selling pressure intensifies.

In February 2025, top crypto platforms like Phemex, Bybit, Margex, BingX, and Coinex are gaining traction among investors.