Hedera (HBAR) Drops 7% Amid Bearish Indicators

Hedera (HBAR) has experienced a 7% decline over the past week, underperforming the broader crypto market, which has shown signs of a mild recovery.

Technical indicators suggest a bleak outlook for HBAR, with key metrics indicating that the selloff may persist in the short term. An analysis of the HBAR/USD one-day chart reveals that the token’s Relative Strength Index (RSI) remains below the neutral 50 level and continues to trend downward, currently standing at 43.38. The RSI is a momentum indicator used to assess whether an asset is overbought or oversold, operating on a scale from 0 to 100. Readings above 70 typically signal overbought conditions and a potential price correction, while values below 30 suggest the asset is oversold and may be poised for a rebound. HBAR’s RSI reading signals growing bearish momentum, with its weakening value suggesting that selling pressure is intensifying, reducing the likelihood of a short-term rebound.

Additionally, HBAR’s Balance of Power (BoP) indicator, which currently returns a negative value of -0.27, further reinforces the bearish outlook. This indicator measures the strength of buyers versus sellers by analyzing price movement within a given period. When an asset’s BoP is negative, it indicates that sellers are dominating the market, increasing the likelihood of continued downward pressure on HBAR’s price in the short term.

HBAR’s decline over the past days has caused it to trade below a descending trend line, a bearish pattern formed when an asset consistently makes lower highs over time. The longer the trend line holds, the stronger the indication that the asset is in a sustained downtrend. This pattern reflects a bearish market sentiment, where HBAR sellers gradually overpower buyers. If this trend continues, it could push HBAR’s price further to $0.12. However, a rally above the descending trend line could propel the HBAR token’s price to $0.19.