Hedera's Market Cap Drops Below $7 Billion Amid Bearish Momentum

Hedera (HBAR) has experienced a significant loss in market capitalization, falling below $7 billion as bearish momentum builds. The asset's trading volume has decreased by 25% in the last 24 hours, settling at $203 million. This decline in volume, coupled with weakening key technical indicators, suggests growing pressure on the current trend.

The Bollinger Band Trend (BBTrend) indicator for Hedera has dropped below 10, signaling a potential loss of bullish momentum. The BBTrend measures the strength of a trend based on price deviation from its average range. Readings above 10 typically indicate a strong and active trend, while lower values suggest weakening momentum or consolidation. With the BBTrend now below 10, it indicates that Hedera’s recent bullish momentum is losing strength, and the asset may be entering a sideways phase or preparing for a potential pullback.

Additionally, the Relative Strength Index (RSI) for Hedera has decreased from 63.12 to 44.67 over the past three days. The RSI measures the speed and magnitude of recent price changes, ranging from 0 to 100. Values above 70 indicate overbought conditions, while values below 30 suggest the asset is oversold. With the RSI now below the neutral 50 mark, it suggests that sellers are gaining more control, and HBAR may be entering a consolidation phase or facing mild downward pressure.

Furthermore, Hedera’s Exponential Moving Average (EMA) lines are signaling a potential death cross, a bearish formation that could lead to increased downside pressure. If this pattern is confirmed, Hedera's price may first test two nearby support levels at $0.156 and $0.153. These levels have recently acted as short-term cushions, and losing them could trigger a sharper drop, potentially opening the way toward $0.124 if selling momentum accelerates. On the flip side, if HBAR can regain strength and push above the $0.168 resistance, it could shift sentiment back in favor of the bulls, potentially leading to further gains toward $0.178 and $0.20 if the uptrend builds enough momentum.

In summary, Hedera (HBAR) is currently facing bearish pressure with falling volume and weakening technical indicators. The asset's BBTrend and RSI suggest a loss of bullish momentum and potential downward pressure. Additionally, the looming death cross on the EMA lines could lead to further corrections if buying pressure does not return soon. Investors should closely monitor these developments and consider the potential for a deeper correction in the near term.