Hedera (HBAR) has seen a significant decline of 7% over the past week, trailing the broader crypto market, which has shown signs of modest recovery. While other digital assets are beginning to stabilize, HBAR continues to struggle, with technical indicators suggesting more pain ahead for the token in the short term.

The general bearish sentiment surrounding Hedera’s price is underscored by the performance of key technical indicators, which signal that the selling pressure may not abate anytime soon. As HBAR’s struggles deepen, the potential for further declines remains high unless the market sees a sharp reversal.

HBAR Bulls Struggling as Bears Take Over

An analysis of HBAR’s one-day chart reveals a concerning trend. The Relative Strength Index (RSI), a popular momentum indicator, currently sits below the neutral 50 level, at 43.38. This positioning suggests that HBAR is still facing substantial selling pressure, as the RSI moves deeper into bearish territory.

The RSI operates on a scale from 0 to 100, with readings below 30 typically indicating oversold conditions, and those above 70 signaling overbought conditions. Currently, HBAR’s RSI suggests that there is more room for downward movement before any potential rebound. This increasing bearish momentum implies that HBAR’s price could continue to slide in the short term.

Balance of Power (BoP) Adds to Bearish Sentiment

Another technical indicator adding to the growing bearish outlook for Hedera is its Balance of Power (BoP). The BoP measures the relative strength of buyers and sellers by analyzing the price movements over a certain period. Currently, HBAR’s BoP sits at -0.27, a negative reading that strongly suggests sellers have the upper hand.

When the BoP is negative, it signals that selling pressure is dominating the market, reinforcing the potential for further declines in HBAR’s price. Given the current negative BoP value, the likelihood of a short-term price reversal remains low, as the bears maintain control over the market.

Descending Trend Line Points to Further Losses

In addition to the RSI and BoP indicators, HBAR’s price action over the past few days highlights the asset’s ongoing downtrend. The token has been trading below a descending trend line, a key bearish pattern that signals consistent lower highs over time. This pattern reinforces the sentiment that sellers are gradually overpowering the buying pressure, pushing the price down.

When a cryptocurrency consistently creates lower highs, it indicates a sustained downtrend, and the longer this trend persists, the stronger the bearish signal becomes. The trend line serves as a barrier to upward movement, making it more difficult for bulls to take control. If this trend continues, HBAR’s price could potentially drop further to $0.12.

A Glimmer of Hope? Potential for Reversal

While the outlook remains largely negative for HBAR, there is a possibility that a strong rally could help reverse the token’s trajectory. If HBAR manages to break above the descending trend line, this would suggest that buying pressure is finally gaining traction. A price surge beyond this trend line could push HBAR back up toward $0.19, offering hope for a reversal.

However, for this to happen, the broader market sentiment would need to shift in HBAR’s favor. A substantial increase in buying volume, along with a shift in the technical indicators, would be required to break the current bearish cycle and allow the bulls to regain control.

Conclusion

Hedera’s (HBAR) recent price action and technical indicators signal that the token is still in a bearish phase, with further declines potentially on the horizon. The 7% drop over the past week, combined with a low RSI, negative BoP, and the persistent downtrend below the descending trend line, points to continued weakness in the short term. Unless HBAR can stage a strong rally and break above key resistance levels, it may continue to face downward pressure, possibly reaching $0.12 in the coming days.

Investors will need to watch for signs of a reversal and remain cautious, as HBAR’s current market conditions suggest more pain ahead unless the bulls manage to make a strong comeback.