HBAR, the native token of Hedera, has experienced a significant setback, with a 26% decline in the current month, breaking a previously bullish trend. This unexpected price movement has put a pause on hopes for reaching a new all-time high.
The overall bearish sentiment in the crypto market has intensified the challenges for HBAR, leaving traders cautious about a quick rebound. The funding rate for HBAR has been fluctuating lately, indicating uncertainty among traders about the future price trajectory of the token. Consequently, many traders are adjusting their strategies to take advantage of market volatility rather than making definitive bets on price direction.
The wavering funding rate reflects a lack of confidence in an immediate recovery, with traders hesitant to commit to long positions, hindering HBAR's ability to gather positive momentum. Until there is a shift towards a more optimistic outlook among traders, the price movements of HBAR are likely to remain unpredictable.
On the technical side, HBAR's Relative Strength Index (RSI) has dipped below the neutral 50.0 level to a three-month low, signaling increasing bearish momentum and a higher probability of further downward pressure on the token's price. This downward trend in RSI typically indicates weakening buying interest that could potentially keep HBAR in a bearish sentiment unless it manages to move above the critical threshold.
As HBAR grapples with these challenges, its price action is crucial. The token has been facing a continuous downtrend, shedding over 20% of its value since the beginning of 2025. The bearish momentum, initiated in mid-January, has caused HBAR to fall out of the bullish flag pattern, which previously hinted at a potential rally towards its peak of $0.57.
Given the current market conditions, the likelihood of further downside for HBAR seems stronger. Continued selling pressure could push the token down to $0.182, potentially erasing some of the gains made by investors during the surge between November and December 2024.
However, there remains a glimmer of hope for a recovery if HBAR manages to reclaim support at $0.25. Breaking this level could indicate a change in sentiment, providing an opportunity for the token to recover lost ground. Crossing the resistance at $0.33 would invalidate the bearish outlook and reignite confidence in HBAR's long-term bullish potential.
In uncertain times for HBAR, traders are advised to closely monitor the evolving market conditions and remain adaptable to capitalize on any potential opportunities.