Hedera HBAR Drops 13.6% In Week Bearish Signals Emerge

Hedera (HBAR) has experienced a significant decline, falling 3.6% in the last 24 hours and 13.6% over the past week. The price of HBAR is struggling to stay above $0.21 and is currently hovering near $0.185. The market capitalization has dropped below $8 billion, indicating a weakening sentiment among investors.

Momentum indicators such as the Relative Strength Index (RSI) and Bollinger Band Trend (BBTrend) are showing bearish signals. The BBTrend has fallen to -8.88, turning negative at the end of May 16 after maintaining positive territory from May 11 to May 16. This sustained drop suggests that bullish momentum has fully faded, and HBAR is now experiencing stronger downside pressure.

The RSI is currently at 39, reflecting a loss of momentum after a brief recovery attempt. Two days ago, the RSI hovered near the oversold threshold at 30.92, suggesting that HBAR had been under strong selling pressure. It rebounded sharply to 53.54 yesterday, briefly entering neutral territory, but quickly slipped back down to 39—highlighting that the bounce was short-lived. This kind of volatility in the RSI often points to a lack of conviction from buyers, with sellers still dominating the market in the short term.

Hedera's price is trading near a critical support level at $0.185, with its Exponential Moving Average (EMA) lines signaling a potential death cross. In this event, short-term moving averages cross below long-term ones, often associated with the start of a deeper downtrend. If this bearish crossover occurs and the $0.185 support fails to hold, HBAR could slide further to $0.169. A breakdown below that would expose the token to additional losses, with $0.160 as the next major support. Should selling pressure accelerate, a move below $0.160 cannot be ruled out, especially in a sustained bearish environment.

On the flip side, if HBAR manages to hold above $0.185 and avoid triggering the death cross, it could find renewed buying interest. A successful defense of support would open the door for a retest of the $0.192 resistance level. A breakout there could push HBAR toward $0.202, and if momentum builds, it may even reach as high as $0.228.

In summary, Hedera (HBAR) is under significant pressure, with key momentum indicators showing bearish signals. The price is struggling to hold above critical support levels, and a potential death cross could lead to further declines. However, if HBAR can hold above $0.185, there is potential for a rebound to higher resistance levels. Investors should closely monitor these levels and indicators for signs of a trend reversal or continued downside pressure.