Hedera’s HBAR Token Drops 7% Amid Bearish Market Sentiment

Hedera’s native token, HBAR, has experienced a significant decline, losing 7% of its value over the past 24 hours. At the time of reporting, the token was trading at $0.19. This downward trend is part of a broader bearish market sentiment, which has weakened buying pressure and led to a sustained decrease in HBAR’s value.

Investors have been exiting HBAR as key indicators suggest further downside. An analysis of the HBAR/USD one-day chart reveals a steady decline in the token’s Accumulation/Distribution (A/D) Line since the beginning of March. This indicator measures money flow into or out of an asset by analyzing its price movements. A declining A/D Line suggests that selling pressure is increasing, as more traders are offloading the asset rather than accumulating it. This persistent downtrend in the A/D Line indicates weakening demand and signals further short-term price declines.

Additionally, HBAR’s Relative Strength Index (RSI) has plummeted, confirming growing sell-side pressure as investors pull funds from the market. The RSI, which measures an asset’s oversold and overbought market conditions, is currently at 40.10. An RSI below 50 generally signals that selling pressure outweighs buying interest, and a continued decline suggests weakening market confidence. If HBAR’s RSI approaches 30, it could indicate oversold conditions, hinting at a potential reversal or further downside risk.

A sustained spike in selling pressure in the HBAR spot markets could cause the token to extend its price decline in the short term. In this scenario, HBAR’s price could plummet to a three-month low of $0.19. If the support level at $0.16 fails to hold, the price drop could strengthen and aim for $0.12. Conversely, this bearish projection would be invalidated if new demand enters the HBAR market. In that case, HBAR could climb to $0.24.