The price of Hedera (HBAR) has recently experienced a significant downturn, falling by 40%, raising concerns among investors. Despite this sharp decline, the cryptocurrency has shown signs of resilience, holding steady above the crucial support level of $0.228. However, in order to stage a meaningful recovery, it will need both market-wide support and a sustained upturn in investor confidence. The recovery, while possible, may not be swift, and there are several hurdles HBAR needs to overcome before it can regain lost ground.

RSI Signals Potential for Recovery

One of the most closely watched indicators for HBAR is the Relative Strength Index (RSI). Currently, the RSI is showing signs of recovery, which could signal an upcoming bullish phase. The RSI has moved off its monthly low, suggesting that buying pressure may be increasing. However, the recovery won’t be confirmed until the RSI crosses the neutral line at 50, which would signal that the buyers are in control. Until this shift happens, HBAR’s price could face resistance in its attempt to break higher.

The RSI’s current position suggests that the market is not yet fully convinced that a recovery is underway. Although the RSI points to potential bullish momentum, it will take some time for this momentum to materialize into a significant price increase. Until the RSI stabilizes above 50, the market sentiment may remain cautious, preventing a strong upward move in the near term.

Technical Indicators Point to Possible Upside, but Recovery May Be Slow

Another key technical indicator is the Ichimoku Cloud, which suggests that there is potential for an upside move in the near future. The Ichimoku Cloud gives a picture of the overall market trend, and its outlook for HBAR indicates that bullish conditions might arise in the coming weeks. However, at present, the price action remains below the cloud, which indicates that any recovery might take time. This means that while there is potential for HBAR to recover, the market may not yet have the strength to support a rapid bounce back.

For a substantial rally to take place, HBAR needs to break above key resistance levels and sustain the move. As of now, the price remains trapped within a range, with resistance at $0.248. Should HBAR manage to break past this level, it could trigger a short-term upward momentum. However, even if this happens, the cryptocurrency will face another significant resistance at the $0.300 mark, and it may take more substantial bullish support to push past this point.

The Risk of Further Decline

While there are some signs of recovery, it is equally important to consider the possibility of further decline. If the bearish sentiment continues to control the market, HBAR may experience a drop below the $0.228 support level, potentially taking the price down to the $0.200 range or lower. Such a drop would suggest a prolonged bear market and could further diminish investor confidence in the token.

At this point, the market’s behavior remains unpredictable, and HBAR’s short-term price action will largely depend on how the broader cryptocurrency market performs. If the market sees increased volatility, it could either help HBAR regain strength or drag the token further down.

Conclusion

In conclusion, HBAR is currently in a phase of uncertainty, with its price having dropped by 40%. While technical indicators show some signs of recovery, the market sentiment remains cautious, and a sustained bullish trend is not yet confirmed. The altcoin’s potential for a rebound largely depends on breaking key resistance levels and receiving broader market support. If the price falls below the $0.228 support level, further declines could be on the horizon. Therefore, HBAR traders and investors should closely monitor market conditions and wait for confirmation before expecting a full recovery.