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Hedera (HBAR) has been under increased selling pressure in recent days, prompting concerns among traders about a potential 13% decline. Over the past 24 hours, HBAR has shed 7.9% of its value, and its daily trading volume has surged by 20%, reflecting a growing bearish sentiment. These signs suggest that the price could fall further, with a short-term bounce possible, but the overall trend pointing downwards.
HBAR’s Struggles and Rising Selling Pressure
The main signal of trouble for HBAR is the increasing selling volume. A key metric, the Long/Short Ratio, showed that 56.5% of the taker volume consisted of sellers. This indicates that bearish sentiment is overwhelming the market, with more traders betting against the asset. This bearish trend is further confirmed by a recent retest of the $0.223 resistance level, which has now been breached. Once a strong support level, $0.223 has failed to hold, further reinforcing the risk of additional downward movement in the coming days.
Technicals Point to a Short-Term Downtrend
Looking at HBAR’s technical chart, the 4-hour price action shows that after experiencing substantial losses in early February, the cryptocurrency managed to stabilize above $0.223 for a brief period. This level was significant, as it marked the 61.8% retracement level based on a previous rally in November. However, during the consolidation phase that followed, trading volume dwindled, and the Bollinger Bands began to tighten. As market sentiment shifted, the technical indicators began to reflect a bearish outlook.
Over the past 48 hours, the bearish momentum has solidified, and the Awesome Oscillator has made a bearish crossover. The Chaikin Money Flow (CMF), which measures the flow of money into and out of an asset, also dropped below -0.05, signaling that selling pressure is outweighing buying interest. This combination of factors has triggered a sharp price drop of over 8% in less than two days.
Future Price Predictions for HBAR
Given these technical indicators and the current market environment, HBAR is expected to continue its short-term downtrend. The next potential support level lies at $0.176, a critical level that could prevent further price declines. However, it’s important to note that Bitcoin (BTC) is currently hovering near a support zone at around $94k, and if Bitcoin sees a bounce in the coming hours, HBAR could experience a short-term price rebound as well.
Bearish Sentiment Dominates Social Metrics
Social media sentiment around HBAR also reflects the negative outlook. According to data from Santiment, the Social Dominance of HBAR has been declining since mid-January. This metric tracks the percentage of HBAR-related discussions across social platforms compared to other major crypto assets. A falling Social Dominance suggests a loss of interest or enthusiasm from the wider community, which can contribute to a lack of buying support.
Furthermore, the Weighted Sentiment for HBAR has remained strongly bearish since mid-December. This means that the overall sentiment around Hedera is negative, which could further pressure the price in the short term.
What Should Traders Do?
For traders looking to enter the HBAR market, the current conditions suggest that long positions may be too risky, as they go against the prevailing downtrend. With rising volatility and bearish sentiment dominating the market, HBAR seems to be more suitable for short-term scalpers rather than long-term investors at this time. Those already holding HBAR may want to consider tightening stop-loss orders or adjusting their strategies to mitigate further losses.
Conclusion
In conclusion, HBAR faces significant challenges in the short term. With growing selling pressure, technical indicators showing bearish trends, and a lack of positive social sentiment, the cryptocurrency is on track to potentially fall by 13% in the coming days. While a short-term bounce could occur alongside Bitcoin’s movement, the overall trend points towards continued weakness. As always, traders should exercise caution and consider the high level of volatility before making any moves.
