Hedera's price has taken a significant nosedive, experiencing a sharp double-digit decrease this past week. This drop has led to a breach of crucial support levels that are proving difficult to surpass.
The outlook for HBAR appears challenging without a substantial surge in buying activity. It is likely to face continued struggles, with a potential further decline in the immediate future.
Hedera Confronts Solid Resistance
The broader market downturn combined with weak demand for HBAR has catalyzed a notable downturn in its valuation over the last seven days. Presently trading at $0.23, the 17th-ranked cryptocurrency by market capitalization has seen a 24% plunge in its value during this timeframe.
Consequently, its price has dipped below its Ichimoku Cloud, establishing formidable resistance overhead. At the moment, HBAR is positioned beneath the Leading Spans A (green) and B (red) of this indicator.
The Ichimoku Cloud serves as a gauge of an asset's market trends’ momentum and pinpoints potential support and resistance levels. A breach beneath this cloud signifies a downtrend in the market.
In this context, the cloud functions as a dynamic barrier for HBAR, indicating a proclivity for further downward movement as long as the cryptocurrency remains below it and demand stays subdued.
The substantial price decline of HBAR has also compelled it to fall beneath its 20-day exponential moving average (EMA), affirming the negative outlook for the cryptocurrency.
The 20-day EMA tracks an asset's average value over the last 20 days, prioritizing recent prices for a streamlined trend assessment. When an asset trades above this EMA, it denotes bullish momentum, indicating buyer dominance.
Conversely, when a cryptocurrency like HBAR slips below this threshold, it denotes waning demand and a potential shift towards a bearish trajectory as sellers take command.
HBAR Price Forecast: Could a Rebound to $0.28 Materialize?
The Relative Strength Index (RSI) for HBAR reveals heightened selling pressure among market participants, with a current indicator value of 35.58.
The RSI gauges market conditions of an asset being oversold or overbought, with values ranging from 0 to 100. Readings above 70 suggest overbought conditions, signaling an imminent decline. In contrast, values below 30 indicate oversold levels, hinting at a potential recovery.
With the RSI at 35.58, HBAR is situated in bearish territory yet not oversold, pointing towards feeble buying momentum. If selling pressure intensifies, HBAR could potentially drop below the $0.20 mark to reach $0.16.
Nonetheless, while the increasing selling pressure is evident from this momentum indicator, a further decline below 30 would confirm an oversold state, potentially paving the way for a price resurgence. Should demand for HBAR surge, its price could escalate to $0.28, with a successful breach indicating a pathway towards $0.40.