Hedera Hashgraph’s native token, HBAR, has recently experienced a noticeable decline in market sentiment, raising concerns among traders about a potential continuation of its downward price movement. Once viewed with optimism, HBAR now faces growing selling pressure, as technical indicators suggest that bullish momentum is fading, and bearish forces may dominate in the near term.

Over the past several days, HBAR has shown signs of weakening enthusiasm among investors. One of the key signals pointing toward this shift is the change in the funding rate, a measure that reflects traders’ overall positioning in the market. In the last ten days, HBAR’s funding rate flipped twice from positive to negative for the first time in a month, signaling that traders are increasingly favoring short positions over long ones. This is a significant development because a negative funding rate indicates that more market participants are betting on price declines, which often precedes or accompanies downward price pressure.

The increased dominance of short traders suggests a loss of confidence in HBAR’s short-term prospects. Investors and traders who once expected the token’s price to rise are now preparing for further drops. This shift in sentiment could intensify selling pressure, potentially pushing the price lower if these short positions gain momentum.

Supporting this bearish outlook is the Relative Strength Index (RSI), a widely used technical indicator that measures momentum. HBAR’s RSI recently slipped into the bearish zone, hitting a two-month low. An RSI moving downward typically signals weakening momentum and increasing selling pressure. The current low RSI reading indicates that the token’s recent price action is largely driven by sellers, and without fresh buying interest, the downward trend may continue.

This weakening momentum combined with the negative funding rate paints a grim picture for HBAR. It suggests that the token could face continued challenges in reversing the downtrend and regaining bullish support. Traders monitoring these technical indicators are likely to remain cautious, potentially leading to further consolidation or price declines as market participants reassess their positions.

At present, HBAR is trading around $0.168, just below a key resistance level set at $0.172. This resistance level has proven to be a significant barrier, with the token struggling to break through it in recent trading sessions. If HBAR cannot overcome this resistance, it may signal that the selling pressure remains strong, and the price could begin to fall back toward important support levels.

The immediate support to watch lies around $0.163, with a further drop potentially extending down to $0.154. Should HBAR fall below these support points, it would confirm a deeper bearish trend and likely cause more traders to reduce their exposure or open additional short positions. This scenario could exacerbate the downward momentum and extend the losses further.

On the flip side, there remains a chance for a bullish reversal if HBAR can decisively break above the $0.172 resistance. Surpassing this key level could restore investor confidence and attract renewed buying interest. In this event, the token could gain upward momentum and target the next resistance level near $0.182. A breakout to this level would likely reverse the current bearish sentiment and open the door for further price gains, potentially signaling the start of a new uptrend.

The current mixed signals from HBAR’s charts create a precarious situation for traders. While bearish indicators dominate, the possibility of a breakout remains. This uncertainty means that HBAR’s price may continue to experience volatility, with traders closely monitoring how it behaves around the $0.172 resistance and $0.163 support levels.

In conclusion, HBAR is facing a critical period marked by fading bullishness and growing bearish pressure. The token’s ability to overcome resistance levels will be key to reversing the current downtrend. Until then, the likelihood of further price declines remains significant, as technical indicators continue to suggest that sellers hold the upper hand. Traders and investors should remain vigilant and watch these key levels carefully, as the coming days will be decisive in shaping HBAR’s short-term price trajectory.