Hedera’s HBAR token has experienced a significant decline in recent months, falling from a high of nearly $0.39 earlier this year to lose over 70% of its value. This drop marks a clear downtrend in the cryptocurrency’s price movement. Hedera itself operates a decentralized public network, employing a unique hashgraph consensus mechanism that aims to provide an enterprise-grade alternative to traditional blockchain systems. However, in the current climate, technical analysis is taking precedence over the underlying technology.
Recent chart patterns reveal a concerning trend. A descending yellow trendline has formed, connecting lower highs since HBAR’s peak, effectively acting as a resistance level that has consistently pushed prices downward. Each attempt at a rally has been met with renewed selling pressure, resulting in a stair-step pattern that trend traders often take advantage of, assuming they are positioned correctly.
The critical point of interest for traders is the price zone currently hovering around $0.095 to $0.10, which is recognized as a “Long Level / Swing Trade Level.” This area serves as a crucial support level, and if buyers respond effectively, a bounce could occur, potentially allowing swing traders to capitalize on a quick 20-30% move towards the resistance zone at $0.125. This level previously acted as support but has now reversed roles, creating a dynamic that often attracts failed rally attempts.
Despite this potential for a bounce, significant challenges persist. Traders need HBAR to not only recover above the $0.125 mark but also to break the downward trendline that has characterized its price action. The persistent selling pressure complicates this scenario, making bullish momentum difficult to sustain.
On the bearish side of the equation, if HBAR fails to hold above $0.095, the next support levels are nowhere in sight, posing a risk for continued declines. This highlights the importance of cautious position sizing for traders in the current market landscape.
For those considering a long position, the strategy is clear: monitor for bullish price action at current levels. A strong daily close above $0.105, coupled with increased trading volume, would serve as confirmation for potential upward movement. Traders are advised to set stop-loss orders below $0.09 to manage downside risk while aiming for the initial profit target at $0.125. For those willing to adopt a more patient approach, a break above the $0.125 resistance and the descending trendline could indicate a stronger bullish trend is unfolding.
Conversely, bearish traders should wait for a decisive break below the $0.095 mark, ideally accompanied by significant volume before initiating any short positions. The current downtrend remains dominant and unchallenged until there is clear evidence to suggest otherwise.
