Hedera (HBAR) has shown a modest recovery in the past 24 hours, with a rise of over 5%. Despite this short-term bounce, HBAR continues to face significant challenges as it remains below the $0.17 resistance level. Technical indicators suggest a weak trend, and while key support levels are holding for now, the broader market sentiment remains uncertain.

Weak Overall Trend Despite Short-Term Relief

Although HBAR’s price has seen a modest uptick, the overall trend remains weak. The Exponential Moving Averages (EMA) continue to show a bearish alignment, with shorter-term moving averages positioned below longer-term ones. This setup typically signals ongoing downward pressure, making it difficult for HBAR to gain any significant bullish momentum. Additionally, the Average Directional Index (ADX), which measures the strength of a trend, is currently at 19.8. This reading is slightly above its recent low but still far below the level of 25 that would signal a stronger trend.

With the ADX still under 20, HBAR’s momentum remains weak, and the market seems to be in a consolidating phase rather than experiencing any clear directional movement. This lack of momentum is evident in the flat nature of the Directional Movement Index (DMI), which shows a narrowing gap between the +DI and -DI indicators. This may indicate a potential shift toward bullish momentum, but it remains unconfirmed until the trend strength picks up.

Key Support Levels Hold for Now

Despite the weak trend, HBAR’s price has managed to defend key support levels at $0.153 and $0.156, which are crucial for maintaining its current price range. These levels are critical because, if they hold, HBAR could see a potential recovery attempt. A breakout above the $0.168 resistance could signal the start of a short-term bullish reversal, with targets extending toward $0.178. If momentum strengthens, HBAR could eventually move towards the $0.201 level, further bolstering its recovery outlook.

However, if selling pressure resumes and HBAR fails to maintain support at $0.156 and $0.153, the situation could quickly deteriorate. In that case, the next major support level lies much lower, at around $0.124. A break below this key support would likely reinforce the ongoing bearish trend and set the stage for further declines.

Ichimoku Cloud Shows Neutral to Bearish Outlook

Looking at the Ichimoku Cloud chart, Hedera’s current trend remains neutral to slightly bearish. The price is trading below the Kijun-sen (red line) and near the Tenkan-sen (blue line), indicating weak short-term momentum. Both lines are flat, signaling market indecision and potential consolidation. The cloud itself is thick and bearish, with the Senkou Span A positioned below the Senkou Span B, further suggesting a lack of bullish momentum.

The price action has recently entered the cloud zone, which could either indicate trend exhaustion or the start of a potential transition. However, unless HBAR breaks above the cloud and reclaims the Kijun-sen, the market is likely to remain in a sideways phase, lacking clear direction.

Conclusion

In summary, while Hedera has shown a slight recovery in the short term, its overall trend remains weak. Support levels at $0.153 and $0.156 are crucial for holding the current price range, and a breakout above $0.168 could trigger a short-term bullish reversal. However, if HBAR fails to sustain these levels, the price could fall significantly, potentially reaching as low as $0.124. Traders should keep an eye on these support levels and look for signs of momentum before making any significant moves.