Hedera (HBAR) has faced a 4% decline recently, signaling potential challenges for the token as sellers seem to be taking control. Despite a solid market capitalization near $8 billion, recent technical indicators point toward increasing bearish momentum, with key support levels at risk. As the price remains stuck below resistance at $0.199, the outlook for HBAR remains uncertain, and it could face further declines unless buyers regain strength.

Weakening Trend Strength

The Directional Movement Index (DMI) chart for Hedera shows signs of weakening momentum. The Average Directional Index (ADX) dropped to 16.6 from 23.5, signaling that the overall trend strength is diminishing. When the ADX falls below 20, it often suggests a market in consolidation or one that lacks clear direction. Currently, this aligns with HBAR’s recent sideways movement.

The DMI indicators further highlight a shift in momentum. The Positive Directional Indicator (+DI) has decreased from 26.9 to 18.4, while the Negative Directional Indicator (-DI) has risen from 13.61 to 22.33. This flip suggests that bearish momentum is gaining strength, although the overall trend remains weak. With the market direction unclear, HBAR is likely to stay range-bound unless a breakout occurs.

Bearish Pressure from Ichimoku Cloud

The Ichimoku Cloud analysis shows indecision in the market, with the price hovering near the lower boundary of the cloud. The Kijun-sen, a key moving average line, has flattened, indicating a loss of trend momentum. Additionally, the Tenkan-sen has started sloping downward, signaling short-term bearish pressure. These factors suggest a bearish outlook unless HBAR can establish a more defined upward trend.

However, the Ichimoku Cloud does show a slight bullish twist in its forward outlook, hinting that sentiment could shift if buyers manage to push prices higher. Yet, this shift is unconfirmed, and the market remains in a phase of consolidation, making it hard to predict future price action with certainty.

Struggling to Break Resistance

HBAR’s price is facing strong resistance at the $0.199 level, which has proven difficult to break through. The price has failed to surpass this threshold multiple times in recent days, creating a ceiling that’s difficult for bulls to overcome. As the exponential moving averages (EMA) tighten, there’s a growing risk of a death cross, where the short-term EMA crosses below the long-term EMA, signaling a potential bearish shift.

If HBAR fails to break above the $0.199 resistance level, it could face further downward pressure. A breakdown below the critical support level of $0.184 could accelerate the decline, with the next support level around $0.179. A further drop below this level could push HBAR under $0.17, which hasn’t occurred since November 2024.

The Path Forward for HBAR

The outlook for HBAR depends on its ability to regain momentum and break through key resistance levels. If HBAR manages to break above $0.199, the next resistance at $0.21 would likely come into play, with the potential for a rally toward the $0.258 level.

However, if the bearish trend persists and key support levels are breached, HBAR could face more significant declines. Market participants will be watching closely to see if HBAR can maintain support and break through resistance, or if the price will continue its downward trajectory.

In summary, while HBAR faces challenges in the short term, the market remains uncertain. The token’s ability to break through resistance or hold support will determine if it can reverse its recent losses and regain upward momentum. Traders should remain cautious as the market consolidates and monitor these key technical levels closely.