Persistent selling pressure has characterized Hedera’s (HBAR) price action, keeping it trapped within a descending channel. Over recent weeks, the cryptocurrency has seen a continuous formation of lower highs and lower lows, with its value sliding from $0.134 down to $0.087. Upward movements have consistently weakened as they approached the upper trendline, indicating strong overhead supply and limited buying interest.
As market dynamics shifted, support at $0.097 was effectively breached, which intensified the downward momentum and pushed prices toward the $0.073 liquidity floor. Notably, trading volume expanded during the sell-offs, suggesting active distribution by sellers rather than a passive decline in interest. Additionally, technical indicators such as the Moving Average Convergence Divergence (MACD) signal that bullish strength remains weak, with the indicator lingering below the neutral line.
Short-lived rebound attempts by buyers near the channel support level saw limited success, as liquidity remained thin, hampering any substantial recovery efforts. Traders have increasingly concentrated on downside liquidity clusters, targeting the $0.073 mark as the next significant area of interest before any potential structural reversal can take place.
A turning point occurred at the $0.07766 demand zone, which marked a notable capitulation point. Following intense selling pressure, a long capitulation wick formed, signaling that panic selling may have reached its peak. This reaction came on the heels of an extended decline from the $0.125–$0.130 supply region and a prior breakdown below the $0.10001 support level. As liquidations subsided, there was a marked spike in volume, indicating a shift from fresh distribution to buying activity emerging gradually.
As a result, HBAR’s price began to stabilize above the $0.080 level, creating higher lows and improving its short-term structure. The rebound pushed the price towards $0.090, where it currently consolidates beneath former support now converted into resistance. The Relative Strength Index (RSI) has also shown signs of recovery, rising towards 53, which reflects increasing momentum following a period of oversold conditions. Concurrently, the short-term moving average has begun to trend upwards, further tracking the recovery path.
For HBAR’s price action to continue in a positive direction, bulls will need to reclaim the $0.10001 level with significant volume support. If successful, this could pave the way for further upside, potentially reaching the $0.110–$0.115 range. However, should the price meet resistance at this ceiling, it may lead to renewed downside pressure, drawing attention back to the $0.07766 level and lower liquidity pockets.
In a notable development, HBAR has also aligned with institutional interests by joining the Digital Monetary Institute. This partnership, which took shape in early February 2026, integrates Hedera into a policy-making discussion forum alongside central banks and major payment firms. Noteworthy blockchain networks such as Ripple (XRP) and ConsenSys are also part of this collaboration.
The timing of this institutional entry aligns well with HBAR’s ongoing price breakout. As market sentiment improves, institutional validation is likely to further bolster bullish momentum for HBAR, enhancing investor confidence. This collaboration in Central Bank Digital Currency (CBDC) and digital finance discussions is expected to strengthen Hedera’s credibility and real-world infrastructure exposure.
In summary, the capitulation at the $0.07766 level has signaled an end to the distribution phase for HBAR, transitioning the cryptocurrency into an early recovery phase just below the critical $0.100 resistance. With enhanced institutional alignment, the momentum for HBAR is being reinforced, indicating a potential transition from a short-term relief rally to a more structurally supported price trend.
