Hedera (HBAR) has experienced a 5% gain in the past 24 hours, pushing its price closer to the $0.20 mark for the first time in two weeks. This rally comes amid some improving technical signals that hint at a potential trend reversal. However, despite the short-term recovery, HBAR still faces significant bearish challenges that could limit its upside potential. The overall market dynamics and key resistance levels continue to weigh on its performance, leaving traders cautious as the coin navigates these mixed signals.

BBTrend Indicator Suggests Weak Momentum

The BBTrend indicator, which measures price momentum relative to the Bollinger Bands, is currently sitting at -1.85. This value, while showing some recovery from a previous low of -3.44, still highlights a predominantly bearish trend for HBAR. The BBTrend indicator often provides insight into the strength and direction of price movements. Typically, values above 0 suggest bullish conditions, while values below 0 reflect bearish momentum. Hedera’s current reading indicates that while there has been a short-term bounce, the broader market sentiment remains negative.

Despite a slight recovery in the past 24 hours, the broader trend for Hedera has been largely bearish, and the coin has struggled to sustain significant positive momentum over the last several weeks. The last time BBTrend crossed above 0 was on March 6, showing how fleeting any bullish signals have been recently. Until the BBTrend indicator sustains a positive reading, the bearish pressure is likely to persist.

Ichimoku Cloud Shows Potential for a Trend Shift

Another technical indicator, the Ichimoku Cloud, shows signs that the trend could be shifting, although challenges remain. Hedera’s price recently broke above the Tenkan-sen line (the blue line), signaling a shift from a bearish stance to a more neutral trend. Currently, the token is testing the bottom of the red Kumo (cloud), which serves as a resistance level. While the price action inside the cloud typically indicates consolidation or market indecision, breaking above the cloud’s upper edge could suggest that the selling pressure is weakening.

However, for Hedera to solidify its bullish momentum, it needs to break above the upper edge of the cloud and turn the trend decisively bullish. Until that happens, the token may continue to struggle with resistance, and the broader bearish trend could remain in play.

EMA Lines Show Potential for Golden Cross

Hedera’s Exponential Moving Averages (EMAs) also indicate that the token is in a potential turning point. Long-term EMAs have been trending downward, reflecting the bearish market conditions. However, the short-term EMAs are beginning to slope upwards, which could lead to a golden cross, a bullish signal that occurs when short-term moving averages cross above long-term averages. If this happens, it could trigger a stronger upward move for HBAR.

The first major resistance level lies at $0.199. If Hedera can break above this level, it could target higher resistance zones at $0.215 and potentially $0.258 in the coming days. The formation of a golden cross would serve as a confirmation of an emerging bullish trend.

Challenges Remain for Hedera’s Recovery

Despite the positive technical indicators, HBAR still faces several challenges. If the short-term momentum fades or the golden cross fails to materialize, the token could experience a pullback. In such a scenario, Hedera may retest support levels at $0.184 and $0.178. A decisive break below these levels could push the price back down under $0.17, reinforcing the bearish structure.

Conclusion

Hedera (HBAR) is attempting to recover from recent losses, with some positive technical indicators showing potential for a shift in trend. However, the overall market sentiment remains cautious, and HBAR still faces significant resistance from key technical levels. Traders and investors will need to closely monitor upcoming price action to determine if the recent recovery can gain momentum or if the token will fall back into a bearish pattern. The next few days will be crucial in determining Hedera’s short-term price direction.