Hedera (HBAR) price has shown growth, rising 21.43% in the past seven days and 172.58% in the past month. This increase is supported by an uptrend in its EMA lines, indicating sustained upward momentum.
However, caution is warranted as both the Ichimoku Cloud and DMI charts highlight signs of a possible trend reversal. If the bearish momentum prevails, HBAR could face a significant correction, testing critical support levels at $0.117 and potentially falling to $0.053.
Uptrend is still strong
Hedera’s DMI chart highlights an ADX value of 52, signaling a strong market trend. The Average Directional Index measures the strength of a trend, with values above 25 indicating a significant trend and values above 40 signaling an exceptionally strong trend.
An ADX at 52 suggests that the current trend, whether bullish or bearish, is firmly established and is unlikely to weaken any time soon. Importantly, this value has remained above 40 since November 14, showing sustained market momentum.
HBAR DMI. Font: TradingView
Currently, HBAR's D+ is 27.2, and D- is 14.4, reflecting that the prevailing trend is bullish. However, the decrease in D+ along with a sharp increase in D- indicates a possible weakening of the uptrend. This divergence suggests growing selling pressure, which could eventually challenge bullish dominance if it continues.
While the trend remains strong for now, the interplay between D+ and D- highlights a critical phase for Hedera where market sentiment could change if bearish momentum gains more strength.
Ichimoku Cloud Shows Caution Is Needed
Based on the Ichimoku Cloud chart, the price is trading close to the Kijun-Sen (orange line) and Tenkan-Sen (blue line), indicating a consolidation phase. The flat nature of the Kijun-Sen suggests a lack of strong directional momentum, while the cloud (Senkou Span A and B) below the price acts as a support zone.
The green cloud indicates bullish sentiment in the medium term, but the price's difficulty in staying above the Kijun-Sen highlights uncertainty.
HBAR Ichimoku Cloud. Source: TradingView
If HBAR price holds support above the cloud, it may attempt a bullish reversal. The next resistance will be around the Tenkan-Sen and the recent peak.
However, a break below the cloud could signal bearish momentum, potentially targeting lower levels. The cloud thinning towards the bottom of the chart also suggests weakening support, making this a critical phase for HBAR's trend direction.
HBAR Price Prediction: A 62% Correction After the Recent Surge?
The HBAR EMA lines display an uptrend, with short-term lines positioned above the long-term ones, signaling strong upward momentum.
The token is up 21.43% in the past seven days. If the uptrend persists, it could challenge the resistance at $0.157 and $0.1711. This bullish sentiment reflects sustained buying pressure, keeping the price on an upward trajectory.
HBAR Price Analysis. Source: TradingView
However, indicators such as the Ichimoku Cloud and DMI suggest a possible reversal. If the trend turns bearish, HBAR price is likely to test the support at $0.117, a critical level to maintain its momentum.
If this support fails, the price could plummet to $0.053, marking a significant 62% correction.
The post Hedera Faces Reversal Signs After Week-Long Rally appeared first on BeInCrypto.
