Hedera (HBAR) has recently experienced a 5% dip, continuing its challenging month-long trajectory. The cryptocurrency has now seen a 22% decline over the last 30 days, with its market capitalization falling to $8.5 billion. As the digital asset navigates through a bearish phase, technical indicators show that selling pressure remains strong, though some signs hint at a possible reversal if certain resistance levels are broken.

Bearish Momentum Persists, But Weakening

Despite a slight recovery in recent days, Hedera’s technical indicators point to ongoing bearish sentiment. The Average Directional Index (ADX), which measures the strength of a trend, shows a reading of 23—down from 28.9 just three days ago. This drop in ADX suggests that while the downtrend remains intact, its momentum is weakening. Generally, ADX values above 25 indicate a strong trend, while values below 20 signal a weak or consolidating trend.

Currently, with the ADX at 23, Hedera’s downtrend continues, but it’s losing strength, indicating that bearish pressure may not be as intense as before. If this trend continues, there’s potential for HBAR’s price action to consolidate, rather than accelerate its decline further. However, without stronger buying pressure, the trend reversal remains uncertain, and sellers could still exert control in the short term.

Ichimoku Cloud Signals Bearish Pressure

Another key technical indicator, the Ichimoku Cloud, further reinforces the bearish setup for Hedera. The price action remains below the cloud, indicating that downward pressure persists. The cloud’s red color reflects the dominance of bearish momentum, with attempts to break above it being rejected consistently. Additionally, the Tenkan-sen (blue line) remains below the Kijun-sen (red line), a classic sign of market weakness.

The cloud’s projection still shows bearish signs, with the Senkou Span A (green line) positioned below the Senkou Span B (red line), confirming continued downward pressure. Moreover, the Chikou Span, a lagging indicator, remains beneath past price levels, further confirming that sellers are still in control. Unless HBAR experiences a surge in buying momentum, it will likely struggle to overcome this resistance and may continue to face pressure from sellers.

Price Levels to Watch: $0.248 and $0.179

For HBAR to stage a reversal, it must break through key resistance levels. The first critical level to watch is $0.248. A sustained push above this price could signal a shift toward a bullish recovery. If HBAR manages to break this resistance, the next target could be $0.32, a 46% increase from current levels.

However, if the downward momentum prevails, the price could dip further, with support at $0.179 coming into play. This would represent a 19% drop from its current position and could act as a critical point for price stabilization.

Outlook: Can Hedera Recover?

The current bearish trend suggests that HBAR is facing strong resistance and a tough road ahead. However, as the ADX suggests, the downtrend is losing its intensity, and there is a chance for consolidation or even a trend reversal. For a stronger recovery, Hedera’s buyers will need to step up their momentum, breaking through key resistance levels like $0.248 and holding above them for a sustained period.

As HBAR’s price continues to navigate these turbulent market conditions, its future largely depends on whether it can reclaim these critical price points. Traders and investors should remain cautious and monitor the asset’s movement closely to see if the market conditions shift in favor of a more optimistic outlook. Until then, the bearish signals remain prevalent, and Hedera’s price could continue facing downward pressure in the near term.