Hedera Drops 3.456% as Traders Watch Key Support Level

Hedera's latest price was $0.2419, down 3.456% in the last 24 hours. The cryptocurrency has been under scrutiny as it retests a key long-term ascending trendline, a critical support level that has held for months. This trendline is being closely watched by traders, who are eager to see if it will hold or break, potentially setting the stage for a new rally or a downward spiral.

One of the key factors driving interest in Hedera is its recent listing on Robinhood, which has boosted its visibility and drawn new retail interest into the market. This listing has sparked a surge in Hedera's value, opening the door to millions of new traders. The listing has also highlighted Hedera's strong fundamentals, including its capacity for 10,000 transactions per second and its enterprise partnerships with firms like Google and IBM. Additionally, there is growing interest in DeFi and real-world asset integration through Thrive Protocol, which has further fueled investor enthusiasm.

Despite the positive developments, Hedera's market cap remains near $10.7 billion, and traders are closely watching the next move. The cryptocurrency's price is currently consolidating, and every test of this support is drawing attention. Hedera remains one of the most closely watched charts in the market as traders wait for confirmation of the next major move. The next move depends on whether HBAR holds the trendline or breaks down. If it holds, targets between $0.39 and $0.50 could come into play, with $1 viewed as a long-term milestone.

Another significant development is the similarity between Hedera's current microstructure and Ethereum's chart, suggesting a potential wave (c) completion near the $0.205 support level. Alternatively, a triangle pattern is emerging, with a break below $0.231 invalidating this scenario. Traders are keenly watching these technical indicators for the next move. The analysis draws parallels to Ethereum’s recent price behavior, where triangle patterns often signal consolidation or impending breakouts, a trend supported by technical analysis literature. These patterns are considered reliable across volatile assets like cryptocurrencies, offering traders potential entry and exit points for risk management.

External factors could also amplify Hedera's volatility. The U.S.-EU tariff deal introduces global trade uncertainties that may drive investors toward cryptocurrencies as hedges. This geopolitical context aligns with studies that emphasize the impact of uncertainty on crypto markets. A break below $0.231 could signal bearish pressure, while holding above $0.205 might confirm bullish momentum, especially if altcoin seasonality kicks in later this year.

Hedera's recent performance reflects broader weakness in digital asset markets, but it has faced particularly acute selling pressure. Data shows the token's Futures Long Liquidations Dominance surged past 88% on Thursday. This metric represents another aggressive shakeout for traders who bet on rising prices. Long liquidations occur when traders using borrowed money to bet on price increases are forced to close their positions due to falling prices. The dominance of these liquidations over short liquidations indicates that most forced selling comes from bullish traders rather than those betting against the token.

When this metric spikes above 80%, it typically signals that bearish momentum has overwhelmed market sentiment. The cascade of forced sell-offs creates additional downward pressure on prices as automated systems trigger more liquidations. Beyond futures market stress, Hedera has also faced selling from sophisticated investors. The token's Smart Money Index has declined steadily since Sunday, reaching 0.98 at current levels. Smart money refers to capital controlled by institutional investors and experienced traders who possess deeper market knowledge and better timing abilities than retail participants. The Smart Money Index tracks this group's behavior by analyzing intraday price movements and comparing morning selling activity with afternoon buying patterns. A rising SMI typically signals institutional accumulation ahead of major price moves. However, the current decline suggests experienced traders are reducing their HBAR exposure. This institutional retreat often precedes extended periods of price weakness.

Several technical indicators help explain Hedera's current predicament. Liquidations represent forced closures of leveraged trading positions when losses exceed available margin. Long liquidations specifically affect traders who borrowed money to buy cryptocurrency, expecting prices to rise. The Smart Money Index measures the ratio between institutional and retail trading activity. Values above 1.0 indicate net institutional buying, while readings below 1.0 suggest smart money is selling. Hedera's current 0.98 reading indicates slight institutional selling pressure. Futures markets allow traders to speculate on cryptocurrency prices using leverage, amplifying both potential gains and losses. When prices move against leveraged positions, exchanges automatically close them to prevent further losses, creating the liquidation events that have plagued Hedera this week.

Hedera currently trades just above a crucial support level at $0.22, which has provided a floor for the token in recent trading sessions. Technical analysis suggests this level represents the last significant barrier before a potential drop to $0.18. If selling pressure continues, a break below $0.22 could trigger additional algorithmic selling and stop-loss orders. Such a move would likely accelerate the token's decline and potentially trap more bullish traders in losing positions. Conversely, any revival in buying interest could help Hedera recover toward the $0.26 resistance level. However, the combination of futures market stress and smart money exodus suggests upward momentum may prove difficult to sustain without significant positive catalysts.

Hedera's 17% weekly decline and $2.7 million in long liquidations reflect severe bearish pressure in both spot and futures markets. The exodus of smart money investors and overwhelming dominance of long liquidations suggest continued weakness may persist unless market sentiment shifts dramatically. Traders are advised to monitor Hedera closely, leveraging platforms for real-time data. The coin's recent momentum underscores its potential, though caution is warranted given crypto's unpredictable nature. Whether Hedera follows a wave (c) drop or breaks out of a triangle, the coming days will be critical.

Recent developments around the Hedera network highlight its positioning for real-world utility and innovation within the cryptocurrency ecosystem, particularly noted in discussions about future adoption drivers. Observers are focusing on the technical setup surrounding HBAR, with analysts debating potential chart formations. A comparison is being drawn to Ethereum’s historical chart structure, suggesting Hedera might exhibit a similar trajectory, although confirmation awaits a decisive move beyond the current consolidation observed by traders.

Scrutiny of large holder behavior, often referred to as whales, indicates a shift towards distribution after a period of accumulation. This change in whale activity is generating discussion among market participants regarding potential shifts in network engagement or sentiment within the Hedera ecosystem, alongside ongoing observations of technical patterns.

The broader context of recent geopolitical uncertainty, specifically concerning shifts in global trade dynamics, is acknowledged as a factor that can influence capital allocation towards crypto assets generally. This macro backdrop adds another layer for stakeholders considering the network's potential role as decentralized infrastructure.

Amidst these discussions, Hedera has been identified by several analysts as exhibiting relative strength compared to broader market pullbacks. This perceived technical resilience during typical seasonal weakness periods positions it as an altcoin attracting attention for potential near-term performance, linked to expectations of upcoming altcoin market activity. Further focus remains on the need for Hedera to sustain its position relative to critical technical markers to potentially initiate a more significant directional move.