Hedera (HBAR) has been grappling with a persistent downtrend that has lasted for two months, with recent price actions suggesting a faltering recovery. Despite earlier attempts to break out of this negative trajectory, HBAR has struggled to maintain upward momentum, leading to a cautious sentiment among investors and increasing the asset’s exposure to potential downside risks.
Recently, the squeeze release momentum indicator had offered a glimmer of hope for HBAR, indicating a potential bullish push that briefly lifted the altcoin’s price. However, this positive momentum appears to be waning, raising concerns that HBAR may lack the necessary support for a sustainable price reversal. As investor confidence diminishes, especially amidst the fading momentum signals, speculative buyers may become hesitant, further subjecting HBAR to selling pressure.
On a broader scale, the relative strength index (RSI) has begun to descend toward the neutral mark of 50. A drop below this threshold would mark a shift to bearish conditions, likely triggering additional selling as investor skepticism intensifies. Continued unfavorable market conditions could push the RSI further into negative territory, signaling an exhaustion of bullish momentum and leaving little room for a near-term rebound.
Currently, HBAR is trading at approximately $0.237, facing significant bearish pressure. If the current trend persists, there’s a real possibility that the token could slip to around $0.230. This two-month downtrend raises the stakes for further declines, making it less likely for Hedera to break through the critical resistance level of $0.248 in the near future. The outlook appears bleak, with HBAR potentially solidifying its position below $0.242, caught in a narrow range that leans towards an increased risk of downside rather than recovery.
Nonetheless, a shift in the overall cryptocurrency market dynamics could influence HBAR’s trajectory. If it manages to flip $0.242 into a support level, the altcoin might gain the momentum necessary to push toward $0.248 or beyond, thereby negating the current bearish outlook and reopening avenues for a stronger recovery.
