Hedera HBAR Drops 40% From April Highs, Hovers Near $0.14

Hedera (HBAR) has experienced a significant decline, losing over 40% from its April highs and entering a sustained downtrend. The daily chart indicates a consistent drop in momentum, characterized by lower highs and lower lows. Currently, the HBAR price is hovering near the $0.14 zone, leaving traders to ponder whether this is a temporary pause before further declines or an opportunity for a reversal.

On the Heikin Ashi daily chart, the HBAR price is clearly trending downwards, with red candles dominating several sessions, indicating persistent selling pressure. The current price is around $0.14391, and it has fallen below a major horizontal support zone from March and April, which is now acting as resistance at approximately $0.15.

The bearish structure is further supported by the Relative Strength Index (RSI), which is at 27.06, deep in the oversold territory. This typically suggests that the asset is technically undervalued and may experience a bounce, but oversold conditions do not always guarantee a reversal without a catalyst.

Key support and resistance zones have been identified based on Fibonacci retracement and visible price structure. Immediate support is at $0.1420, with strong support at $0.1270 and a final defense at $0.1050. If the HBAR price drops from the current level, the first target would likely be $0.1270, representing an approximate 11.74% decline. For an upside recovery, the first resistance is at $0.1530, and the major barrier is at $0.1675. If the HBAR price reclaims $0.1530, it could move back to $0.1675, representing an upside of approximately 16.37%. This sets up a near-term risk-reward ratio of 1:1.4 for aggressive buyers, making this zone interesting for reversal traders.

The RSI at 27.06 is the most oversold reading HBAR has seen since April, indicating potential for a short-term relief rally. However, the RSI-based moving average is at 35.82 and still pointing downward, meaning the broader momentum hasn’t turned yet. For confirmation of a reversal, the RSI needs to break above 35, and the price needs to close above $0.1530.

There are two possible scenarios for HBAR's next move. In the bearish breakdown scenario, if the HBAR price fails to hold the $0.1420 support, it could drop toward $0.1270, and if selling accelerates, even $0.1050. This would be a clear continuation of the downtrend. In the relief bounce scenario, given the oversold RSI and previous bounces from similar zones, a short-term rebound toward $0.1530–$0.1675 is possible. However, for bulls to take control, a strong candle close above $0.1675 is critical.

Hedera price is in a tricky zone. Technically oversold, but not yet showing signs of reversal. Short-term traders may look for bounce plays, but only with tight stop-losses below $0.1420. Long-term investors may consider averaging in only if $0.1270 holds. As it stands, HBAR’s next big move will be decided within the next few daily candles. Reclaiming $0.15 could flip sentiment, but breaking $0.1420 may trigger a 10–15% slide.