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Hedera (HBAR) could experience a brief dip before mounting a potential recovery, with analysts closely watching the $0.22 price level as a key area of support. Despite recent bullish performance, indicators suggest the token may revisit lower levels before buyers regain control.
Price action faces resistance at $0.3
After peaking at $0.305 in late July, HBAR failed to break above the $0.3 resistance level, a zone previously identified as a supply region. The rejection confirms the importance of the $0.285–$0.3 range as a significant overhead barrier.
Currently, the token trades below the Value Area High (VAH) of $0.264, as determined by the Fixed Range Volume Profile (FRVP) applied from January 2025 to the present. This indicates a short-term weakness, although the broader structure remains intact — with higher lows still valid on the daily chart.
Liquidity pocket could pull price to $0.22
The $0.218–$0.223 area has seen strong liquidity build-up since mid-July. This zone now acts as a magnet for price movement and could lead HBAR down to retest this support before a bounce. A further drop to as low as $0.22 is possible, but such a move would likely be temporary.
Importantly, the daily chart shows $0.223 as a higher low. If this level is breached, it could challenge the current bullish structure. A deeper decline below $0.206 would increase the likelihood of a trend reversal, prompting a more cautious stance for both short-term and long-term participants.
Momentum indicators point to weakening demand
Volume and momentum signals hint at declining buyer interest. The Accumulation/Distribution (A/D) line failed to form a sustained uptrend, reflecting weak accumulation. Similarly, the Chaikin Money Flow (CMF) recently dropped below -0.05, indicating net capital outflows from the market.
These technical signals reinforce the likelihood of a near-term correction, suggesting that traders might benefit from patience rather than aggressive positioning.
Bitcoin’s support level remains a key variable
Whether HBAR holds the $0.22 region depends partly on Bitcoin’s ability to stay above $112,000. A drop below $110,000 for BTC could increase downside pressure across the market, dragging altcoins like HBAR along with it. On the other hand, if Bitcoin maintains support, HBAR may find a strong recovery after the pullback.
Short-term caution, long-term optimism
In summary, while the short-term picture for HBAR suggests a potential dip toward the $0.22 level, the long-term trend remains bullish unless deeper levels like $0.206 are breached. Traders may want to wait for confirmation of support before re-entering, while long-term holders could view this as an opportunity to accumulate at lower prices.
