Hedera’s HBAR Token Drops 5% Amid Bearish Indicators

Hedera’s native token, hbar, has experienced a 5% decline over the past week, diverging from the broader market uptick. This downward trend has raised concerns about a potential return to its year-to-date low. The token’s performance has been influenced by several bearish indicators, including its position relative to key technical levels and momentum indicators.

One of the primary indicators suggesting a bearish outlook for HBAR is its position below the Parabolic SAR (Stop and Reverse) indicator on the one-day chart. This technical tool measures an asset’s price trends and identifies potential entry and exit points. When an asset’s price trades below the SAR, it indicates a downtrend, suggesting that the market is in a bearish phase with the potential for further price dips.

Additionally, HBAR’s Chaikin Money Flow (CMF) remains in negative territory, currently standing at -0.07. This key momentum indicator measures money flows into and out of an asset. A negative CMF reading, as seen with HBAR, signals that selling pressure dominates the market. This means that more investors are offloading the token than accumulating it, a pattern associated with a weakening price trend.

Ask Aime: "Can a 5% decline in HBAR mean it's time to sell?"

The daily chart shows that HBAR’s decline has pushed it near the 20-day exponential moving average (EMA). This key moving average measures an asset’s average price over the past 20 trading days, giving weight to recent changes. When the price falls near the 20-day EMA, it signals a potential support level being tested. However, if the price breaks decisively below the EMA, it may confirm sustained bearish momentum and further downside risk. Therefore, HBAR’s break below the 20-day EMA could lower its price to its year-to-date low of $0.12. Conversely, if demand rockets and HBAR bounces off its 20-day EMA, its price could rally above $0.19.