HBAR Retraces to $0.25 Amid Key Support Test After 130% Rally

HBAR, the native token of Hedera Hashgraph, has pulled back to $0.25 following a sharp rally that saw the token rise over 130% from a low of $0.13 on June 22 to a high just above $0.30 by July 27. The upward move was fueled by a confirmed double bottom formation and a bullish crossover of the 20-day EMA above the 50-day SMA, which typically signals a potential trend reversal. The price broke out of its consolidation zone around $0.23, supported by strong volume, reinforcing the bullish narrative [1].

However, the recent price action suggests growing resistance at the $0.30 level. After failing to form a higher low, HBAR has retreated to around $0.25, retracing back into the breakout zone that previously acted as resistance. Although the price briefly dipped below the 20-day EMA, it closed with a strong green candle, indicating that buyer interest remains intact [2].

The formation of a potential double top around $0.30 has raised concerns among traders and analysts. This pattern, which typically signals a shift in momentum, has emerged after two unsuccessful attempts to push past the $0.30 resistance. A decisive break below the key support level at $0.23 on increased volume could confirm the double top and potentially drive the price toward previous support levels at $0.20 or even lower to $0.18 [3].

Despite the current pullback, the broader technical setup remains bullish, with the 20-day EMA still providing support and the overall trend intact. Traders are now closely watching the next few sessions to determine whether the recent correction is a temporary setback or the beginning of a more significant downturn. If the price stabilizes above $0.23 and shows strength on volume, the uptrend could resume. On the other hand, a sustained breakdown could signal a shift in market sentiment and trigger further selling pressure [4].

HBAR’s recent volatility has also drawn attention from the broader market. While institutional interest, including its inclusion in Grayscale’s Smart Contract Fund, has generated optimism, the recent price correction reflects the cautious stance among traders. The Fear and Greed Index for Hedera stands at a neutral 56, indicating a balanced but watchful market [5].

Social media and search metrics suggest continued interest in the token, with elevated engagement around key price levels and events like the Robinhood listing. However, the recent dip has introduced uncertainty, and the market is now closely evaluating whether this is a consolidation phase or the start of a more bearish trend [6].

Order book analysis reveals a mixed picture, with buying pressure easing but some orders still lingering near current levels. This suggests that while buyers are not entirely absent, the strength of the current support zone will be critical in determining the next move [7].

HBAR remains at a pivotal moment as it tests its key support levels and potential reversal patterns. The coming sessions will be crucial in confirming whether the token can reclaim its bullish momentum or if a deeper correction is on the horizon. For now, traders are advised to closely monitor price action, volume dynamics, and key technical levels as the market awaits a clear directional signal.